Why Jumia Stock Was Crushed on Tuesday

Shares of Jumia Technologies (NYSE: JMIA), an e-commerce and digital-payments company in Africa, were crushed on Tuesday after the company reported business results for the third quarter of 2020. Investors' expectations were riding high under the assumption the COVID-19 pandemic was pushing Jumia's adoption. But revenue was down for the quarter. This led to the stock being down 23% as of 10:15 a.m. EST.

Jumia's total Q3 revenue fell almost 18% year over year. Looking at just its e-commerce operations, gross merchandise volume fell a more pronounced 28% from last year. Investors had bid the stock up about 100% in 2020 in anticipation of a big quarter. Needless to say, this isn't what they had in mind.

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Source Fool.com