JMIA - Concerns Continue to Pile Up for Jumia Stock Once Dubbed the 'Amazon of Africa'
2023-03-09 08:24:00 ET
Investors wanted anything that sounded "futuristic" for their portfolios in 2020 and 2021. This included sectors like electric vehicles or the space economy , industries with little proven financial results but ginormous future "total addressable markets" to capture. At least, that's what their investor slide presentations said. Two years later, almost all of these new economy stocks have crashed and burned, losing investors hundreds of billions of dollars in the process.
One of these hyped-up new-age stocks was Jumia (NYSE: JMIA) . Dubbed the "Amazon of Africa," shares of the stock rose over 1,000% during the market bubble period in early 2021. Now, with losses piling up, slowing growth, and the popping of the technology bubble, shares have tanked over 90% from those lofty highs.
But the worst might be yet to come for Jumia. Here's why investors should continue to avoid the stock going forward.
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Concerns Continue to Pile Up for Jumia Stock, Once Dubbed the 'Amazon of Africa'