Why Jumia Technologies Stock Soared 34% in August
Shares of African e-commerce company Jumia Technologies (NYSE: JMIA) soared 34.1% in August, according to data provided by S&P Global Market Intelligence. The stock was actually up closer to 75% early in the month after the company reported financial results for the second quarter of 2022. But it pulled back some in the back half of the month as the market also declined.
On Aug. 10, Jumia reported Q2 results that showed growth in important areas. Quarterly active customers were up nearly 25% year over year to 3.4 million, orders on its platform were up 35% to 10.3 million, and volume for merchandise and payments were both up as well.
These metrics are important for Jumia's business because they're good indicators for adoption -- it's still early for e-commerce in Africa. Another good indicator is merchandise value per order. A smaller per-order value suggests that people are using the platform more for regular everyday purchases rather than large one-time purchases. And in that regard, Jumia improved in this area as well with value per order decreasing compared to last year.
Source Fool.com
