JMIA - Jumia Stock Surged 600% in 2020. Is It a Buy for 2021?
Jumia Technologies (NYSE: JMIA) was one of the hottest tech stocks of 2020. Shares of the German company, which provides e-commerce services to about a dozen African countries, soared over 600% this year even as recessions in its top markets throttled its growth.
The bulls believe Jumia will overcome its near-term challenges, and that its early-mover's advantage in Africa could turn it into an e-commerce behemoth like MercadoLibre (NASDAQ: MELI) in Latin America. The bears will note that Jumia is unprofitable, its stock looks expensive, and its growth is slowing. Let's take a fresh look at Jumia to see which perspective makes more sense.
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Jumia Stock Surged 600% in 2020. Is It a Buy for 2021?