Could Jumia Technologies Become the Next Amazon?
When Jumia (NYSE: JMIA) went public four years ago, many investors hailed the e-commerce company as the "Amazon (NASDAQ: AMZN) of Africa." It had already launched its marketplace in 14 countries, which accounted for 72% of Africa's total GDP, and the continent's e-commerce sales were expected to soar as income levels and internet penetration rates improved. It made its market debut at $14.50 a share and hit an all-time high of $65.51 on Feb. 10, 2021, but now trades at just $4.
Jumia lost its luster as its revenue growth cooled off, its losses widened, and rising interest rates drove investors away from more speculative growth stocks. But could this forgotten e-commerce company mount a comeback and still become the Amazon of Africa? Let's review its recent slowdown and long-term challenges to decide.
Image source: Getty Images.
Source Fool.com
