JMIA - Is Jumia the Amazon of Africa or the Overstock?
Almost every growth stock wants to be known as the Amazon (NASDAQ: AMZN) of its sector.
After all, Amazon has been one of the best-performing stocks of the last generation, and that growth came largely when the company wasn't even profitable. Drawing comparisons to Amazon is a way for management to say that its company has big growth potential but isn't yet profitable, because it's investing in that growth opportunity.
Uber , for example, called itself the Amazon of transportation several times in the run-up to its IPO. Another company that has been granted the Amazon halo is Jumia Technologies (NYSE: JMIA) , often referred to in the financial press as the "Amazon of Africa." In some ways, the comparison makes sense. Jumia is Africa's largest e-commerce company, operating both as a direct seller and a third-party marketplace, and it has its own logistics and delivery network. In addition to its core in e-commerce, the company has a number of other parallel businesses, including food delivery, travel bookings, and Groupon -like deals. However, beyond the basic similarities, Jumia differs from Amazon in several important ways.
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Is Jumia the Amazon of Africa or the Overstock?