Jumia's (NYSE: JMIA) public life is only a few months old. Founded in 2012, the online African merchant went public in April 2019. Investors compared Jumia with Amazon in the U.S. and MercadoLibre in Latin America and rushed to invest. Consequently, the stock price climbed as high as $52 per share from the IPO price of $14.5.
Shortly after the IPO, Citron Research, a well-known short-seller, published a controversial report that referred to several unverified discrepancies in the company's reported numbers to accuse Jumia of significant fraud. Since then, Jumia's stock price is significantly lower than its short-lived, all-time high level, and even fell under the IPO price. Now that IPO excitement subsided, it's time to dig in and decide whether Jumia is worthy of its almighty title of the Amazon of Africa.
Source: YCharts