As we’ve discussed, speculation continues to spread to all corners of the market. Even those areas that have been left for dead for quite some time. Today’s example of this is Jumia Technologies, the “Amazon of Africa” that caught wildfire early in its life before the gravity of reality brought it back down to earth. 🛒
The company reported reducing its losses by over 90% in the fourth quarter as it focused on restoring order and gross merchandise value (GMV) growth. Like other struggling companies, it cut costs significantly and leveraged lower tax provisions to help drive the earnings improvement.
It hopes that a leaner business and a more narrow focus will help it get back on track, explicitly betting on a rebound in physical goods. Macroeconomic and currency headwinds will remain, but investors applauded the cost-cutting and more streamlined approach. 📦
Meanwhile, total payment volume (TPV) fell 10% YoY to $59.3 million despite transactions rising 41% YoY to 3 million. The company said 45% of orders on the Jumia platform were completed using JumiaPay, representing a 31% YoY increase. 💳
As we continue to see in beaten-down tech stocks, minor fundamental improvements can drive sharp increases in the stock price. Technical analysts also pointed out that prices have stabilized near the same levels they did during COVID, showing clear demand for the stock at those levels.
$JMIA shares jumped 41% today to 7-month highs, sending Stocktwits sentiment into extremely bullish territory. With the momentum back in the stock, this will likely stay on traders’ radars for the foreseeable future. 👀
