MELI - Will This Be the Year Jumia Becomes The Next Mercadolibre?
You can forgive investors for getting excited. After watching Amazon (NASDAQ: AMZN) become the king of e-commerce in North America, many took what they saw and applied it abroad. So when e-commerce companies like Mercadolibre (NASDAQ: MELI) and Sea Limited (NYSE: SE) cropped up in Latin America and Southeast Asia -- and returned 4,400% and 1,200%, respectively, since going public -- it seemed like a sure blueprint for success.
That led many investors to put money behind Jumia (NYSE: JMIA) , which is trying to replicate the success of Amazon, Mercadolibre, and Sea Limited, but in Africa. But that promise hasn't panned out so far as the stock has fallen 50% since going public.
In this Dec. 26 video from their YouTube channel , Motley Fool.com contributors Brian Feroldi and Brian Stoffel review the bull and bear case for Jumia, and reveal why they aren't holding their breath to see Jumia put up Mercadolibre-like returns.
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Will This Be the Year Jumia Becomes "The Next Mercadolibre"?