Down 68%, This E-Commerce Stock Is a No-Brainer Buy
Emerging market stocks like MercadoLibre and Coupang tend to receive plenty of love from investors. That said, it seems like one area -- one large area, that is -- of the world is typically excluded from most conversations: Africa. I'm not sure why that's the case. After all, Africa is home to 54 countries and 1.4 billion people, granting businesses limitless opportunities for innovation and growth.
Jumia Technologies (NYSE: JMIA) is an Africa-focused e-commerce company that also operates in the financial technology (fintech) and logistics arenas. Africa is forecast to eclipse half a billion e-commerce users by 2025, equal to a compound annual growth rate (CAGR) of 17%, but what's mind-boggling is that such a projection only represents a 40% penetration rate on the continent. Thus, it's beyond doubt that the long-term potential of Jumia's business is through the roof.
The company delivered its second-quarter earnings report on Aug. 10, inducing a nearly 20% spike in its stock price. Even so, the African e-commerce stock is still down 68% since going public in 2019, so it's not too late for investors to hop on board. On that note, let's look at Jumia's existing situation to help determine if it's a deserving investment right now.
Source Fool.com
