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Why Is Jumia Stock Price Up (NYSE: JMIA)? New 52 Wk Highs on +29% Day

Analyst Team trader
Updated 10 Jul 2024

In a significant upswing, Jumia Technologies AG (NYSE: JMIA), an e-commerce powerhouse operating across various African regions and internationally, witnessed its shares leap by 29.9%, adding $2.53 to reach $10.99. This surge represents a notable turnaround from recent performances, and takes out new 52-week highs for JMIA.

The stock's movement comes amidst no immediate news from the company, but on an initiation of analyst coverage from Benchmark that put a price target on Jumia of $14.


YOUR CAPITAL IS AT RISK. 76% OF RETAIL CFD ACCOUNTS LOSE MONEY.


With its headquarters in Berlin, Germany, Jumia Technologies carves out a distinct presence within the Consumer Cyclical sector, specifically within Internet Retail. The enterprise's JumiaPay service exemplifies its integrated approach, streamlining transactions across its broad market reach.

Curiously, Jumia's move upwards surfaces against the backdrop of its valuation, with a market cap of approximately $1.11 billion and total revenue amassing near $194 million – juxtaposed against a substantial net loss to common shareholders of around $110 million. Although the company doesn't offer dividends, its growth prospect may suffice as its intrinsic reward for investors.

Institutional stakeholders maintain a 18.81% claim in Jumia, indicating a decent level of confidence from larger market participants.

As an e-commerce platform making headway in emerging markets – offering everything from consumer products to digital services – Jumia's current trajectory may reflect investor optimism in its growth prospects and operational expansion. However, analysts following Jumia have a mixed stance, despite this new bullish take from Benchmark. Whether this stock surge is a prelude to enduring success or a temporary uplift remains to be seen. The market will be watching Jumia keenly, eyeing its ability to parlay today's gains into long-term value creation.

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YOUR CAPITAL IS AT RISK. 76% OF RETAIL CFD ACCOUNTS LOSE MONEY

The AskTraders Analyst Team features experts in technical and fundamental analysis, as well as traders specializing in stocks, forex, and cryptocurrency.