Jumia's Advertising Spend Needs to Pay Off Big-Time, and Soon
Founded in 2012 and headquartered in Berlin, Germany, Jumia Technologies (NYSE: JMIA) is sometimes touted as the Amazon of Africa. So when Jumia stock peaked near $70 a year ago, it still might have seemed like a bargain as shareholders envisioned Amazonian long-term returns.
In early 2022, after a persistent share-price rout, investors must reassess their position. If they liked the stock at $70, shouldn't they love it at less than $10?
That might not be the right question to ask, though. If price is what you pay while value is what you actually get (my apologies for butchering a well-worn Warren Buffett quote), then investors should check Jumia's financials and decide for themselves whether the company's substantial outlays will translate to value for loyal shareholders.
Source Fool.com
