Is Jumia the Amazon of Africa or the Overstock?
Almost every growth stock wants to be known as the Amazon (NASDAQ: AMZN) of its sector.
After all, Amazon has been one of the best-performing stocks of the last generation, and that growth came largely when the company wasn't even profitable. Drawing comparisons to Amazon is a way for management to say that its company has big growth potential but isn't yet profitable, because it's investing in that growth opportunity.
Uber, for example, called itself the Amazon of transportation several times in the run-up to its IPO. Another company that has been granted the Amazon halo is Jumia Technologies (NYSE: JMIA), often referred to in the financial press as the "Amazon of Africa." In some ways, the comparison makes sense. Jumia is Africa's largest e-commerce company, operating both as a direct seller and a third-party marketplace, and it has its own logistics and delivery network. In addition to its core in e-commerce, the company has a number of other parallel businesses, including food delivery, travel bookings, and Groupon-like deals. However, beyond the basic similarities, Jumia differs from Amazon in several important ways.
Source Fool.com
