Why Today Was a Bad Day for Jumia Stock
Shares of African e-commerce company Jumia Technologies (NYSE: JMIA) were having a bad day on Tuesday after the company released financial results for the third quarter of 2021. As of 1:30 p.m. EST, the stock was down 20% for the session and down almost 80% from its all-time high reached earlier this year.
For Q3, Jumia reported revenue of $42.7 million, which was up 8.5% year over year. Management hadn't given guidance but Wall Street analysts had expected revenue a little higher. And considering many retail investors expect Jumia to be a primary beneficiary of long-term e-commerce adoption in Africa, I believe it's fair to say they were hoping for growth better than 8.5% as well. These unmet expectations are why the stock is down today.
Image source: Jumia Technologies.
Source Fool.com
