Jumia Stock Is Up 500% This Year: Is It a Safe Investment?
Shares of African e-commerce start-up Jumia Technologies (NYSE: JMIA) have surged more than 456% in 2020, as investors looking for the next big e-commerce stock have piled into the company's shares on the expectation that its first-mover status in some of Africa's biggest economies will pay off with huge gains.
But so far, Jumia hasn't delivered the same sort of high-growth results as other e-commerce companies around the world. Some initial struggles in multiple markets led to the company taking a step back and refocusing on the best markets, and getting to cash-flow-positive results more quickly. Active customers are up 23% and orders have climbed a modest 9%.
But is Jumia a safe investment? On the Nov. 30 edition of "The Wrap" on Motley Fool Live, host Jason Hall pointed out some of the challenges the company faces, and why he thinks it is the riskiest of the international e-commerce stocks right now.
Source Fool.com
