According to the United States International Trade Administration, Africa is set to experience a substantial increase in e-commerce users across the continent. Estimates show that by 2025, there will be about 520 million e-commerce users with an e-commerce penetration rate of 40%. This are fabulous numbers and leave a long runway for growth as penetration will not even be at the 50% mark. And has depleted over 50% of its resources on its growth acceleration strategy. Taking these factors into consideration I consider this stock to be a hold.

Now the success of mergers and acquisitions: understanding takeovers depends upon the administration of Jumia, what their plans are and how they execute them to reach global dominance and appreciation. They include different products in demand, and people buy them with a great craze. Jumia technologies operate in several other countries, including Egypt, Morocco, Nigeria, Africa, and others. Moreover, Jumia’s headquarters is based in Berlin, Germany, and is listed on New York Stock exchange.

Jumia Technologies AG JMIA:NYSE

And it’s about to change everything we know about everything. According to Grand View Research, the global AI boom could grow from about $137 billion in 2022 to more than $1.81 trillion by 2030. And investors like you always want to get in on the hottest stocks of tomorrow. Jumia Technologies AG, the company behind the biggest e-commerce business across Africa, said it has fired employees and suspended others after investigations of improper sales practices.

Companies often use marketing to help build trust with customers. Yet, Jumia has recently seen no correlation between marketing spend and sales results. Having the best supply at the best price is Jumia’s best marketing message.

Analysts Offer Insights on Technology Companies: Trade Desk (TTD), Materialise (MTLS) and Jumia Technologies AG (JMIA)

Taking into account the 52-week price action we note that the stock hit a 52-week high of $12.53 and 52-week low of $2.79. In order to get updated all time related to your favorite stick market and company. You should always watch financial reports and keep an eye on daily stock reports.

For instance, Jumia has supported 600+ logistics providers, 100,000+ merchants and 100,000+ JForce Agents. Today there are 4,000 direct employees and about 400,000 ecosystem partners. Jumia, the pan-African e-commerce company, has partnered with Zipline, to launch on-demand drone delivery in Ghana, with plans to expand the service to Nigeria and Côte d’Ivoire in the near future. Holiday sales will boost near term performance for most players in the Electronic Commerce industry, although valuation remains an issue, especially considering the deteriorating outlook in 2023. Baillie Gifford, the Edinburgh-based asset management firm long known to have a penchant for pre-IPO tech companies, has reduced its shares in African e-commerce giant Jumia, per the latest 13G/A fili…

Thus, shares are declining, and this might not be the end of the volatility. As you might imagine, the continent is young, with a median age of 19.7 years. Further, experts estimate that even by the year 2050, the continent’s median age will still be under 25 years. That’s simply amazing, fundamentally bolstering the case for JMIA stock.

Keys to Jumia’s Survival and Success

Jumia is the leading logistics platform in Africa and has extensive reach. 27% of deliveries in 2021 were made in remote areas, where choices of products are currently extremely limited for consumers. The Jumia logistics network includes over 600 logistics partners, ranging from individual entrepreneurs to large companies. Jumia has more than 3,000 pick-up stations and drop-off locations to facilitate deliveries. The mission of the company is to deliver innovative, convenient, and affordable on-line services to consumers to help them fulfill their basic everyday needs. In fulfilling this mission, Jumia helps small and large businesses across Africa reach new consumers and grow.

And as of the third quarter, the company is as close to profitability as it’s ever been. The truth is, there have been legitimate reasons to not like Jumia in the past. But its most recent quarterly report caught my eye and caused me to reconsider the company. For example, according to the Internet World Stats, as of December 2020, Africa had an estimated 590 million internet users and 255 million Facebook users across the continent. 69% of internet users and 75% of Facebook users lived in the regions in which Jumia operates.

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The company’s financial experts predict the stock price of Jumia in 2023 will be around 5.72$ to 11.62$. This game-changing move by Jumia was enough to land it on my watch list. Trading around 18 times trailing sales, the stock still looks expensive given its growth rate. But I don’t believe this company can be dismissed any longer. It’s worth watching, especially as it executes this game-changing pivot toward profitability. Furthermore, Africa is a market with logistical challenges that need to be solved for e-commerce to thrive.

It remains a promising long-term play on an oft-overlooked geographic region, but the current market climate indicates that investors should stick with more promising tech stocks instead. In November 2019, Jumia announced the suspension of its e-commerce operations in Cameroon effective on 18 November as the company concluded that its transactional portal is currently not suitable to the current environment in Cameroon. As part of the portfolio optimization effort, Jumia later ceased operations in Tanzania effective on 27 November 2019. While Jumia operations in Tanzania provided many opportunities for customers and vendors, the company said it needed to focus its resources on other markets that can bring the best value and help Jumia thrive.

As well as General & Administrative expenses decreasing to $90 million and $105 million, compared to $122 million in 2022. These are welcomed news by shareholders, however because of the decreasing liquidity position, it is a necessity to follow Jumia very closely on a quarterly basis. Jumia’s business is stabilizing, but its mediocre growth rates and massive losses make it a risky stock to own as rising interest rates and geopolitical headwinds pummel the market.

The company’s revenue is forecast to grow by 83.00% over what it did in 2022. Current records show that the company has 99.88M in outstanding shares. The stats also highlight that short interest as of Jan 30, 2023, stood at 7.25 million shares, which puts the short ratio at the time at 3.23. From this we can glean that short interest is 7.26% of company’s current outstanding shares.

Investment website The Motley Fool speculated Jumia’s price may be soaring in part because of the performance of a food delivery service the company operates. Moreover, according to analysts cited by London Loves Business, internet penetration — and with it, business opportunities for Jumia — stands to increase dramatically in Africa over the coming years. The increase is likely to be especially significant in countries where Jumia is the strongest, according to the report.

This isn’t to pick on Nigeria because many other neighboring countries experience similar inequities. As well, the United Nations reports on the challenges of attempting to close Nigeria’s extreme wealth gap. Frankly, the continent must address these gross injustices before enterprises like Jumia can become successful. Making matters worse, its most recent fiscal statement for the quarter ended Dec. 31, 2020 shows revenue of $50.8 million. Granted, the company is recovering from the novel coronavirus pandemic.

Jumia to cut products and overheads as new management chase profits

The sub-Saharan economy is growing at only 3.3% per year, and contracted in 2020. The continent’s entire gross domestic product is under $2.7 billion. Much of what you can learn online about Jumia is out of date. 170 employees have rated Jumia Technologies Chief Executive Officer Jeremy Hodara, Sacha Poignonnec on Glassdoor.com.

This was an unsustainable situation, and one that needed to be addressed for Jumia to be a great investment. Last year, it put the company on a path toward profitability that began noticeably paying off in this year’s third quarter. As Jumia is active in one of the most unstable regions in the world, its business faces several risks which could hinder the company’s operations and growth. In this section I will outline a few of the risks faced by the company. However, it is important to note that I will only discuss the most important ones in my opinion.

Currently, the continent has about a 2-5% e-commerce penetration. However, the on-line marketplace in Africa can create about 5 million new jobs by 2025. Finally, the middle class is expected to grow +80% between 2020 and 2030, and the labor forces will have 1.1 billion people working by 2054. JumiaPay is a proprietary digital payment solution integrating relevant local payment methods that include debit and credit cards, bank transfers, and mobile money wallets.

• Now we have landed on the future to predict the stock price value in the upcoming year.
• This is not an exhaustive list, but it gives a rough idea of how various factors affect the stock market.
• Information is provided ‘as-is’ and solely for informational purposes, not for trading purposes or advice, and is delayed.
• Management has already stated that it has put strategic actions in place to reduce the quarterly cash burn rate and gave guidance that EBITDA loss for 2023 will decrease to $100 million to $120 million.

The company was founded by Jeremy Hodara, Sacha Poignonnec, Peter Allerstorfer, Manuel Koser, Tunde Kehinde and Raphael Afaedor in 2012 and is headquartered in Berlin, Germany. Jumia Technologies AG is a Germany-based e-commerce platform provider. The Company’s marketplace is consists of a range of sellers that offer goods in a wide range of categories, such as fashion and apparel…

https://1investing.in/ is a pan-African e-commerce company with a diverse group of 100K sellers offering goods across a wide range of categories. But the most critical headwind affecting JMIA stock is likely the poor fundamentals and infrastructure of the African continent. Nigeria, one of Jumia’s key markets, has long had persistent gender inequality. Further, Voanews.com reports that the pandemic widened this inequality. Currently, Jumia trades at nearly 17-times sales, whereas the retail industry has a median price-sales ratio of 0.87x.