Shares of Coupang, Inc. (NYSE: CPNG), the largest e-commerce marketplace in South Korea, plummeted 5.02% to close at $25.11 on November 8, 2024. The sharp drop came despite the company's strong recent performance and positive growth projections from analysts.

Coupang has seen rapid expansion in recent years, leveraging its technology and automation to drive efficiencies in its core product commerce business. In the second quarter of 2024, the company reported an EBITDA of $530 million, up 30% year-over-year, with product commerce margins improving to 8.2%.

In a recent investor letter, Baron Funds, a prominent investment firm, highlighted Coupang as "one of the most competitively advantaged e-commerce businesses globally, with significant runway for both revenue and earnings growth." The firm cited Coupang's expanding margin-accretive offerings, improving operations and supply chain, and adoption of automation as key drivers for continued margin expansion.

Despite the optimistic outlook, Coupang's stock experienced a significant sell-off on Wednesday. While the company did not report any major negative news or events, the plunge may have been driven by profit-taking after the stock's strong performance in recent months or broader market volatility. Some analysts suggest that the sell-off could present an attractive entry point for investors bullish on Coupang's long-term growth prospects.