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Jumia

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
JUMIA still inder fire As everyone is really excited due the ER whether is in short/long position. In advance, Rome wasn't built in a day. We saw at the Amazon that workforce expense and shipping cost hit/strode them hardly and I expect the same in case of Jumia. What is really a struggle for me is how to evaluate the currency exchange. Their major market is: Egypt, Morocco, Ivory Coast, Kenya and South Africa. So how they handle different currencies when they change. I know my question little bit silly but I would be happy if someone would give me a nice lesson (and for everyone). It’s important because their operating area is special, thus it’s in my opinion wort to keep in mind how the different currencies effect the company consolidated balance on daily weakly basis and so on. Total outstanding shares (Million) 2017 2018 2019 2020 Current 78,53 78,53 78,41 89.63 98,59 ( 20% more shares ) This table above will be an important point. I saw in Yahoo finance comments that a lot of “traders” is calling 50$ again and so on. Its not impossible but highly unlikely due the company increased the outstanding shares by 14% by the end of 2020. In near term (1Y) I don’t expect the share will reach 50$ without significant catalyst. The expected development of the company fundaments also does not point for such a high valuation. The current outstanding share increase from 2017 is 20%. Not so good for those who expecting 50$, although its not impossible with surprisingly strong ER. But highly unlikely – We expect downward pressure due shipping and labor cost. Price target 20$ before any huge buying happening.
NYSE:JMIA
by ElGatoTrade
JMIA (jumia), e-commerce in africa, but definitely not only it.JUMIA is a German company that operates in Africa and is most known for its e-commerce side. but, in my opinion, most interesting thing about this company is its other 2 parts of the company. jumia logistics -> this part of the company offers logistic to the main e-commerce, BUT also is now open to third parties, both local sellers who wants to operate with non-jumia orders, as well as other business that needs someone to transport their goods. it makes me think of something like USPS with amazon when it first started. jumia pay -> this is the part of the company that takes care of the payments. here the customers of the e-commerce can pay, but can also use this app to pay bills, mobile phone plans and a lot more. just for your information, it is estimated that HALF of the mobile money of the world is used in Africa, as there are problems for the banks to work with people, which is not a problem we even heard of. so, jumia pay is in my opinion, and following jumia founders also, the big play of the future. it can even become a fintech company by itself. point is: 1) logistics in Africa at the moment is like shit for a loooot of reasons (just search for it, there are tons of articles) --> if jumia logistics reach a good logistic development, it will be the to-go company for other business in Africa who needs to transports their goods. 2) Africa is a place where people and banks do not co-operate at the best, and so mobile money and mobile accounts for money storage is a big big thing. --> because of that, as people pay with jumia pay for their goods bought via jumia e-commerce, they get stuck with jumia pay and that part of the company can really grow, and even expands in other businesses like it already did with bills and mobile phone plans. talking about the stock itself, I did no fundamental research about the pure money thing, just the possibility there are in Africa, and I think that the price would not be that hight from 2 dollars bottom if the company has no future. so, my play will be. if 23 USD holds and the price bounce up 3 times or has a strong reaction, it is a good point to buy, and just put stop loss below 23 (22 will be fine). (it would be a double+ bottom) if the price falls as low as 19 or 20, my buy price is 19.60 with a stop loss of 15.6 which is -20% from the buy point. as for the target price, I think 89 is fine. I took this price as it is an ATH for sure, but it is not in the 90sh which IMO is a bad place to be stuck in. last thing is. do not care too much how much your upside % is with price target 89, or ur just gonna HOPE it will work. so stick to SL (stop loss) and let time drive the market. ofc, if major events happen in the market, this stock can be also destroyed by general pessimists, but it can as well skyrocket. i will try to post news about this, but I would prefer not to change my initial plan.
NYSE:JMIA
by camelot0707
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
Current view on JMIA. Relevant levels and structuresToday, we will speak about JMIA. Let's check the main items we can see on the chart. a) The price has broken a huge descending Wedge pattern b) As usual, after the breakout of this type of structure, we can observe a retest or consolidation close to it. c) In this case, we are observing a consolidation between 34.00 and 27.00. It's possible to observe a new local low on that range or a range between the specified price levels d) However, the most important level we are observing right now is the activation one. (Green horizontal line at 34.80) e) If the price reaches it, we expect a continuation of the bullish movement towards the next resistance zone at 48.00 f) Pay attention to the horizontal yellow line as a possible inner resistance zone g) If the activation level is reached, we expect a resolution between 20 to 40 days h) Of course that if the price keeps falling, we will cancel our view. Also, if the idea is activated, our invalidation level is below the consolidation structure. Thanks for reading!
NYSE:JMIALong
by ThinkingAntsOk
2