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:
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 the 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.
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.