Coupang Shares Plunge Amid Data Breach Fallout and Mounting Legal Threats

Coupang US22266T1097

Coupang's stock faced significant selling pressure during today's trading session, driven by investor alarm over a massive data theft and subsequent regulatory actions. A sharp analyst downgrade, directives from South Korean authorities, and a wave of class-action lawsuits converged to push the share price to an intraday low of $21.11.

The immediate catalyst for the sell-off was a stark reassessment by Nomura. The investment bank downgraded Coupang's equity rating from "Buy" to "Neutral" on January 12-13, simultaneously slashing its price target to $22.00. More dramatically, Nomura cut its 2026 earnings per share (EPS) forecast by 95% to a mere $0.03. The bank cited substantial financial and operational risks stemming from a November 2025 data breach affecting over 33 million users, anticipating significant customer compensation and a potential fine of up to $900 million from the Korea Fair Trade Commission (KFTC).

This bearish sentiment was amplified by legal filings in the United States. Between January 12 and 14, law firms including Hagens Berman and Berger Montague initiated class-action suits. The complaints allege Coupang misled investors regarding its cybersecurity protocols and disclosure obligations, with the class period covering share purchases made between May and December 2025. The deadline for lead plaintiffs to file is February 17, a date market watchers are closely monitoring.

Regulatory Rebuke and Executive Scrutiny

Simultaneously, South Korea's Personal Information Protection Commission (PIPC) intervened. The regulator ordered Coupang to remove internal, unconfirmed investigation findings from its app and website, arguing their publication risked misleading the public and obstructing the official probe.

Management stability has also come into question. Interim CEO Harold Rogers departed South Korea on December 31, 2025—just days before a scheduled police interview on January 5. Authorities are now examining whether Rogers provided false testimony during a parliamentary hearing and have requested the judiciary consider travel restrictions upon his potential return.

Market Impact and Technical Outlook

The cumulative effect of these developments has been severe. Since the data breach was disclosed, the company's market capitalization has eroded by more than $8 billion. Trading volume was notably high in the latest session, with the company's total market value standing at approximately $39.68 billion.

Looking ahead, analysts expect continued volatility. Two key factors will be decisive for the stock's near-term trajectory. First, the February 17 deadline in the U.S. class-action proceedings may clarify the scope of potential liability. Second, technical support at the 52-week low of $19.02 is critical; a sustained break below this level could trigger further selling. Conversely, any precise quantification of potential regulatory fines or a settlement agreement with the PIPC could provide a foundation for a recovery.