If not evidently obvious, business procurement is a huge space. Here are the long-term bullish drivers for Coupa, and why I think a premium is warranted for this stock: But while I think Coupa's valuation is still at a premium (even after the sharp correction this year), I think it's a far more reasonable price to pay for Coupa's many merits. I'm not looking at this picture with rose-colored glasses: I had been a vehement bear on Coupa throughout the pandemic last year as it rose, citing egregious valuation concerns. Data by YCharts The bullish thesis for Coupa, and a valuation update Despite continued excellence in results, Coupa has slipped ~25% year to date and ~35% from all-time highs notched in February. Once one of the hottest stocks in the enterprise software sector, Coupa Software is known for its procurement software tools that purport to give its clients an "Amazon experience" when purchasing corporate supplies and components. Conversely, some Wall Street favorites lost substantial shine, despite the fact that results have still held up well.Ĭoupa ( NASDAQ: COUP) falls into this latter bucket. Many high-fliers continued to rise, while many of last year's biggest losers in pandemic-impacted industries also recovered. While the overall direction of the market is up ~20 points year to date, the types of stocks that have risen alongside it have varied widely. ![]() Markets have been an incredibly fickle beast this year. Sundry Photography/iStock Editorial via Getty Images
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