JMIA - Why Jumia Technologies Stock Tumbled by 17% Today
2023-08-15 17:29:00 ET
Notable declines in fundamentals caused investors to bail from Jumia Technologies (NYSE: JMIA) stock on Tuesday. Following its release of quarterly results, the online retailer's shares fell by more than 17% in price. That was far steeper than the 1.2% drop of the bellwether S&P 500 index.
In its second quarter, Jumia reported revenue of $48.5 million, which was down 15% from the same period of 2022. Gross merchandise value (GMV) fell at a steeper rate, declining at a 25% clip to $202 million. At least the retailer managed to mop up some of the red ink; its comprehensive net loss was $38.1 million against the nearly $71 million shortfall in the year-ago quarter.
In its earnings release, Jumia placed the blame for its declines on the broader macroeconomy. It quoted CEO Francis Dufay as saying that "Usage performance continued to be affected by the difficult operating environment with record levels of inflation impacting consumers' spend as well as sellers' ability to source goods."
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Why Jumia Technologies Stock Tumbled by 17% Today