Here's Why Jumia Stock Surged 12% After Short Seller Tweet
Shares of Jumia Holdings (NYSE: JMIA) surged as much as 12% after trading opened on Oct. 9, following a tweet from short seller Citron Research early this morning. In the tweet, Citron said, in caps, "NO WAY" would it short Jumia's stock after the recent run-up in the share price. This is a sharp reversal from Citron's accusations in May 2019 when it called the company an "obvious fraud" and announced it was shorting Jumia stock.
Citron's timing on the May 2019 short could not have been better. Jumia shares cratered more than 50% in less than three months and had lost 80% of their value by the end of the year. But since the beginning of this year, shares are up 57% and up an incredible 337% from the lows during the coronavirus crash in late March.
Source Fool.com