Josh Brown's Top Stock Pick: Coupang (CPNG) and Emerging Markets

Coupang: The "Amazon of South Korea"

• 💡 Coupang (CPNG) is highlighted as a top stock pick, recently hitting a 52-week high.
• 🎯 The company is described as the "Amazon of South Korea", with most of its business operations in South Korea.
• 🚀 Coupang is compared to Mercado Libre (MELI), which has seen over 9,000% growth, suggesting Coupang has significant future opportunity in margins, earnings, and growth.

Emerging Markets and Korean Stock Performance

• 📈 The video points out a bull market in emerging market stocks, which are outperforming the S&P 500.
• 🇰🇷 Within emerging markets, Korean stocks are performing exceptionally well, with the Kospi up 28% and a growthier index up 42%.
• 📊 Despite its strong performance, this trend is not widely recognized or discussed.

Coupang's Market Position and Outlook

• 📌 Coupang, though a Korean business, is incorporated and based in Seattle, making it a US company with a US founder.
• 📉 The stock is currently trading at a 40% drawdown from its 2021 high, indicating it is not prohibitively expensive.
• 💰 Barclays has set a $36 target for CPNG, and a recent 50- to 200-day moving average crossover signals short-term momentum.
• 📈 The stock is expected to reach the mid-$30s based on its current breakout.

Market Classification of South Korea

• 🧐 There's a discussion on whether South Korea should be classified as an emerging or developed market.
• 🌐 While Vanguard considers South Korea a developed market, the MSCI index classifies it as emerging.
• 🌍 This classification impacts index funds, with iShares products based on MSCI including South Korea as a significant emerging market allocation.
• 🇺🇸 Coupang offers a way for US investors to capitalize on the strong performance of Korean stocks.