The last four weeks has been that of uplift in fortune for holders of Jumia stock, and the development is rightfully drawing attention of stock-inclined minds:
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.