Thesis
Jumia (JMIA) has seen its stock price get crushed in recent months in the wake of a May short report and an August Q2-19 earnings report that disappointed investors.
The short report by Citron alleged fraud, which largely consists of fraudulent orders that were used to boost gross merchandise volume stats. Though Q2-19 revenue was up 58% at €39.23M, sales fell €1.27M short of expectations.
If the fraud accusations either prove to be meritless or are somehow resolved, Jumia still faces a tough operating environment and will face a lot of challenges