Why Jumia Stock Is Plummeting Today
Jumia (NYSE: JMIA) stock is getting crushed in Thursday's trading. The e-commerce company's share price was down 29.5% as of 10:15 a.m. ET amid a 0.8% decline for the S 500 (SNPINDEX: ^GSPC) and a 0.7% decline for the Nasdaq Composite (NASDAQINDEX: ^IXIC).
Before the market opened this morning, Jumia published its fourth-quarter results -- and Wall Street was not happy with the print. In addition to posting Q4 sales that missed the market's expectations, the online retail specialist also issued forward guidance that disappointed investors.
Jumia posted a loss of $19.5 million on revenue of $45.7 million in the fourth quarter. While the loss for the period was roughly in line with the market's expectations, sales fell roughly $4 million short of the average analyst estimate. Making matters worse, the business reported a substantial decline in gross merchandise volume (GMV) in the period, with total transaction value across its platform falling 12% year over year to $206.1 million.
Source Fool.com
