Here's Why Jumia Stock Surged 12% After Short Seller Tweet

Shares of Jumia Holdings (NYSE: JMIA) surged as much as 12% after trading opened on Oct. 9, following a tweet from short seller Citron Research early this morning. In the tweet, Citron said, in caps, "NO WAY" would it short Jumia's stock after the recent run-up in the share price. This is a sharp reversal from Citron's accusations in May 2019 when it called the company an "obvious fraud" and announced it was shorting Jumia stock.

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Citron's timing on the May 2019 short could not have been better. Jumia shares cratered more than 50% in less than three months and had lost 80% of their value by the end of the year. But since the beginning of this year, shares are up 57% and up an incredible 337% from the lows during the coronavirus crash in late March.

Source Fool.com