Will Jumia Stock Pay Off Big for Investors?
Jumia Technologies (NYSE: JMIA) hasn't escaped the 2022 bear market -- it's down 65% year to date, and it isn't hard to see why. Despite enjoying a first-mover advantage in Africa's e-commerce market, the Nigerian company has failed thus far to achieve profitability or rapid revenue growth. But what might the future hold for this embattled enterprise?
The self-styled 'Amazon of Africa' is primarily a third-party online marketplace designed to connect buyers and sellers in key economies such as Nigeria, Egypt, and South Africa. As one of the first publicly traded companies to tackle this opportunity in Africa, Jumia should be benefiting from both brand recognition and a first-mover advantage. But so far, its growth story isn't playing out as well as investors might have hoped.
Image source: Getty Images
Source Fool.com
