- The stock price of Jumia Technologies AG (NYSE: JMIA) increased by 24.99% as it went from a previous close of $45.57 to a closing price of $56.96 on Friday, January 21. These are the details.
The stock price of Jumia Technologies AG (NYSE: JMIA) — an Africa based online marketplace — increased by 24.99% as it went from a previous close of $45.57 to a closing price of $56.96 on Friday, January 21. Investors appear to be reacting to Citron Research assigning Jumia a price target of $100 recently.
Citron Research’s Andrew Left used to be bearish on Jumia, but then he changed his tune after doing some due diligence. Last year, Citron had accused Jumia of falsifying orders, according to Fool.
Left discussed his change in opinion on Jumia in an interview with Benzinga, published on January 21. Left also noted that Jumia is the “largest opportunity” in e-commerce.
If you look at the company’s quarterly revenues, there were some decreases year-over-year. Jumia co-CEO Sacha Poignonnec attributed that to the winding down of first-party businesses in favor of third-party marketplaces.
Poignonnec also pointed out that Jumia’s logistics operations could also be valuable for investors. Jumia had launched the first end-to-end logistics partner in Africa. Recently, Jumia opened its network for third parties to increase volumes and decrease shipping costs. Now Jumia is considering the spinning off of its logistics arm into a separate unit.
A price target of $100 imputes a 75.56% upside to the closing price of the stock on Friday. Between March 2019 and July 2020, the stock price of Jumia saw a significant dip. However, the stock price of Jumia increased over 500% over the past 6 months.
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