What Happened?
Shares of online platform company Coupang (NYSE: CPNG) fell 5.1% in the afternoon session after the company faced mounting pressure from the fallout of a major data breach that led to the CEO's resignation.
The breach, which exposed the personal data of over 33 million customers, prompted CEO Park Dae-jun to resign. In response to the security incident, Morgan Stanley lowered its price target on the stock to $31 from $35, citing potential damages and the need for higher spending on cybersecurity. The situation worsened as South Korean police raided the e-commerce company's headquarters. Public opinion also soured, with surveys showing strong support for a government investigation. Additionally, the head of the Fair Trade Commission signaled intent to impose substantial fines on the company, adding to investor concerns about the financial impact of the breach.
The shares closed the day at $24.33, down 5.1% from previous close.
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What Is The Market Telling Us
Coupang’s shares are not very volatile and have only had 9 moves greater than 5% over the last year. In that context, today’s move indicates the market considers this news meaningful, although it might not be something that would fundamentally change its perception of the business.
The previous big move we wrote about was 5 days ago when the stock dropped 2.2% on the news that its CEO, Park Dae-jun, announced his resignation as he took responsibility for a massive data breach.
The breach was described as one of the worst in South Korea's history, exposing the personal information of over 33 million customers. In a statement, the departing CEO said he was stepping down after feeling a "heavy sense of responsibility for the incident." Following the news, South Korean police raided the company's Seoul headquarters. The company also faced mounting legal pressure as a U.S. law office prepared a class-action lawsuit. Coupang appointed its General Counsel and Chief Administrative Officer, Harold Rogers, as the interim CEO.
Coupang is up 9.3% since the beginning of the year, but at $24.36 per share, it is still trading 27.3% below its 52-week high of $33.53 from September 2025. Investors who bought $1,000 worth of Coupang’s shares at the IPO in March 2021 would now be looking at an investment worth $494.62.
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