Worried About a Bear Market? 3 Reasons to Buy Coupang Stock Like There's No Tomorrow.

2025 has brought plenty of surprises for investors, most of them bad. The United States is in the process of upending global trade, seeing a devalued U.S. dollar, and putting massive tariffs on goods from its largest rival, China.

U.S. stocks have reacted wildly, producing some of the biggest up and down days in market history. Volatility is on the rise with many investors worried the S&P 500 index will fall into a bear market.

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If you're worried about a bear market or worsening economic conditions in the U.S., you can look for opportunities abroad. Coupang (NYSE: CPNG) is one such option to consider adding to your portfolio.

Diversification away from the U.S.

Coupang has little exposure to the tumultuous U.S. market. The company operates an e-commerce, retail, and technology marketplace similar to Amazon, but its business is focused on South Korea. As a result, it isn't facing the risk of heavy tariffs on its products.

Running the leading e-commerce platform in South Korea is a lucrative business too. Last year, Coupang's core product commerce segment grew revenue 18% year over year in currency-neutral terms to $26.7 billion. Active customers reached 22.8 million, up 10% year over year, as Coupang penetrated most South Korean households.

This spending from South Korean consumers should be resilient in the face of any sustained trade war between the U.S. and China. Coupang may even benefit if Chinese manufacturers increase their reliance on non-U.S. markets to sell their goods. The company has been gaining market share in retail spending for years, and that's likely to continue over the next decade as e-commerce grows as a percentage of the South Korean retail landscape.

Expanding into new markets

As its South Korean marketplace becomes more mature, Coupang is seeking out new countries in which to expand its e-commerce offerings. The first international market it has launched in is Taiwan, the island nation off the coast of China. Taiwan has a population of over 20 million people with high average incomes, making it a good fit for Coupang.

Last quarter, Taiwan revenue grew 23% quarter on quarter. It's no wonder that Coupang's developing offerings segment grew 153% year over year in 2024 (excluding the company's recent acquisition of Farfetch).

The developing offerings segment includes Taiwan revenue, as well as other emerging businesses. At just $3.6 billion in annual sales, the segment remains small relative to the core e-commerce business in South Korea. However, it can develop into a nice growth engine within the next few years.

Data by YCharts.

Building a holistic ecosystem of commerce

Coupang's e-commerce success in South Korea comes down to an interlocking web of services for both consumers and sellers that you can't find anywhere else in the market.

Like Amazon, Coupang has built out a vertically-integrated fulfillment and delivery network, which allows it to deliver items to customers on the same or next day. It's now allowing third-party sellers to utilize the Coupang fulfillment network, bringing increasing scale to the system.

For consumers, Coupang offers a subscription called Rocket Wow that gives unlimited free shipping on orders. It also includes discounts on Coupang Eats -- the company's food delivery service -- as well as streaming video content. This bundle of services from Coupang is an attractive value and should grow over time.

Coupang sports a market cap of $38.1 billion as of this writing. It generated $30.3 billion of revenue in 2024, and is well on its way to hitting $40 billion and beyond as management guides for approximately 20% growth in 2025.

Profit margins will not be sky high, but management thinks a 10% adjusted EBITDA margin is achievable at scale. This growth stock is firing on all cylinders, and it can continue to do so even if a bear market or recession takes hold in the U.S.

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John Mackey, former CEO of Whole Foods Market, an Amazon subsidiary, is a member of The Motley Fool’s board of directors. Brett Schafer has positions in Amazon and Coupang. The Motley Fool has positions in and recommends Amazon. The Motley Fool recommends Coupang. The Motley Fool has a disclosure policy.