Fruitful yuletide:
The stock sold as high as $47 a day to Christmas and has hovered between $34 and $39 since December 11th 2020. On January 12th 2021, Jumia stock sold at $40 on the floor of New York Stock Exchange.
Unexpected positive turn in fortune:
Jumia recorded a 12% drop in revenue in the first three quarters of 2020, but has made a 600% increase in stock price since then. The best part is that the stock has sustained its good momentum for over a month.
Regret for doubters:
Some investors who didn’t buy Jumia stock when it sold for just over $2 in March 2020 are beating up themselves for not taking advantage. Currently trading for just over $40, some holders see an opportunity to sell. But the next few months can also bring huge fortune for those who dare to hold.
Bright prospect:
Analysts ascribed the improvement to investors’ belief in
Jumia’s potential and are willing to overlook lagging business results for the
time being. For instance, a $5,000 investment in Amazon in 1997 will translate
to more than $4 million today.
The current good performance of Jumia stock is an indication
that the brand holds the potential of being a replica of the Amazon story in
Africa.
Opportunity for Africans:
Jumia prides itself as Amazon of Africa. It could end up
being a smart move for Africans who buy into the dream by owning part of a
brand that identifies with them.