Is Jumia Stock Extremely Undervalued?
Lately, I've been diving into Jumia Technologies due to its rising popularity over the past month. I've written stories about how it makes money, its most popular product, and I explored its game-changing move of pivoting from being an e-commerce retailer to an e-commerce platform. But there's still an important subject I've left untouched until now: Does Jumia stock provide good value for investors today?
There's a rising consensus that Jumia stock is extremely undervalued. For example, popular short-seller Citron Research recently flipped its rating on Jumia, calling it a "generational buy" and giving it a $100 per share target price. For perspective, the stock traded under $20 at the time the rating change was reported. Considering Jumia stock has gone on to reach highs above $40 per share since then, it seems everyday investors are increasingly arriving at Citron's viewpoint and buying up this supposedly undervalued stock.
To be sure, there are reasons to be excited about Jumia's future. But I predict it will take a long time for the stock to produce generational returns, and most investors simply aren't mentally prepared to wait till it does.
Source Fool.com
