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JMIA

Jumia JMIA - The next Amazon?Not sure why Jumia has such strong technical while the fundamental are not so good. Is Jumia being given the same grace as Amazon that did not turn a profit for 13 or so years? Jumia is not turning a profit. But Jumia is like the Amazon of Africa. Do investors see the same future for Jumia? Do they see this as a bargain price for longterm investors? Not sure. The technicals have the price up 400% ytd. Price is about 500% away from all-time highs. Not sure what's next for Jumia. This is one to watch.
NYSE:JMIALong
by PortfolioBuildersClub
1
Jumia (NYSE:$JMIA) Plummets 52% on Disappointing Q2 2024 ResultsShares of Jumia Technologies (NYSE: NYSE:JMIA ) experienced a sharp 52% drop following the release of its second-quarter 2024 financial results, underscoring significant challenges the e-commerce platform faces in maintaining its market position and financial health. Key Financial Highlights - Revenue: Jumia reported a revenue of $36.5 million, marking a 17% decrease year-over-year. However, when adjusted for constant currency, revenue actually grew by 15%. - Gross Merchandise Volume (GMV): GMV stood at $170.1 million, a 5% decline year-over-year, but showed a 35% increase in constant currency terms. - Operating Loss: The company posted an operating loss of $20.2 million, an improvement from the $22.1 million loss in Q2 2023, indicating an 8% reduction year-over-year. - Adjusted EBITDA: Losses narrowed to $16.3 million from $18.2 million in the previous year, reflecting a 10% year-over-year improvement. - Net Cash Flows: Cash used in operating activities decreased significantly to $8.4 million compared to $19.5 million in Q2 2023. Strategic Commentary Jumia’s CEO, Francis Dufay, expressed optimism despite the stark revenue decline. He highlighted that the company is witnessing improved cash efficiency and accelerated usage trends. Key metrics such as orders per customer, excluding JumiaPay app orders, increased to 2.1 orders per customer, and GMV growth in reported currency improved across multiple countries. "Our quarterly cash burn declined 55% quarter-over-quarter to $8.7 million, thanks to disciplined cost management and reductions in finance costs," Dufay noted. "We continue to see a 6% sequential increase in our active customer count, showing that our strategic priorities are yielding positive results." Revenue Breakdown - Marketplace Revenue: Comprised of commissions, fulfillment, value-added services, and marketing, the segment saw a 10% decline year-over-year in USD but a 27% increase in constant currency. - First-Party Sales Revenue: This segment experienced a 24% year-over-year decline in USD, but a 4% increase in constant currency, primarily affected by lower sales in Egypt and foreign exchange impacts. Cash Position and Liquidity Jumia's liquidity stood at $92.8 million as of June 30, 2024, a decrease from $101.5 million in the previous quarter. Despite this decline, the company managed to significantly reduce its cash outflows compared to previous quarters, demonstrating improved financial management. Operational Highlights - Customer Metrics: Orders per customer and GMV in constant currency improved, signaling better customer engagement and retention. - JumiaPay: Transactions increased by 31% year-over-year, driven by higher penetration of JumiaPay on delivery and cashback campaigns. - Termination of Mastercard Agreement: Jumia ended its commercial agreement with Mastercard Asia/Pacific, aiming to diversify its relationships with other payment service providers. Outlook Jumia remains focused on reducing losses and enhancing cash efficiency. The company aims to continue increasing orders and GMV throughout 2024, excluding the potential impact of foreign exchange fluctuations. “Our strategy is working, and we are confident in our ability to achieve profitable growth,” concluded Dufay. Technical Outlook At present, Jumia (NYSE: NYSE:JMIA ) stock has experienced a decline of 50.90%. The stock exhibits a weak Relative Strength Index (RSI) of 26.55, placing it in an oversold region. The daily price chart reveals a downward gap, a pattern indicative of a price decrease due to absence of trading activity. Common factors contributing to this pattern include fundamental indicators, earnings reports, and news releases. Conclusion Jumia’s Q2 2024 results highlight the company’s ongoing struggles but also point to areas of improvement and strategic realignment. While the sharp drop in stock price reflects investor concerns, the company’s efforts to streamline operations and enhance cash management could pave the way for a more stable financial footing in the future. Investors and stakeholders will be closely watching Jumia's performance in the upcoming quarters to see if the company can turn its strategic initiatives into sustainable growth.
NYSE:JMIA
by DEXWireNews
Is the Amazon of Africa tumbling?Jumia has dissapointed investors due to its slow growth expressed in both, weak figures and a lack of onboarded customers. That being said, a price reaction can be clearly seen on the charts. However, Jumia has chosen the African continent as its target market and wants to be the Amazon dominating ecommerce. This gives tremendous opportunities to grow. Analysing this company fundemantally and despite the weak performance, I would say it is massively undervalued. For instance just looking at one aspect, they have built a logistics system that is worth more than 20 billion USD. Lets get to the technicals: Jumia has taken a shocking price hit, down from about 60 USD to around 10 USD. And I wouldn´t be surprised if this continues, even down to around 5 USD. However, I think price will find strong support at the 8 USD level. Main reason for this is that price is oversold on the weekly basis (check RSI), and fundamentally the valuation is at about 8 USD as well. So whats my play here? Short Term: Short Medium Term: Short Long Term: Long Tbh, I have opened positions ever since the 20 USD mark and I keep adding, as I really believe this company has a 100X potential in less than 10 years. Cheers, Thatwalletguy PS. No financial Advice and do your own research!
NYSE:JMIALong
by ThatWalletGuy
1
JMIA Jumia ready to bounce from supportJumia Technologies AG operates an e-commerce platform in Africa, Portugal, Germany, and the United Arab Emirates. They kept diluting their shares in the last year and investors were disappointed by the results. i see two scenarios: it bounces from this support and the price target is the 21usd resistance. it drops to 8usd, according to the head and shoulders pattern and then the price target is the 16usd resistance. Looking forward to read your opinion about it.
NYSE:JMIALong
by TopgOptions
2