Why Jumia Technologies, The Amazon Of Africa, Is Popping Off

Why Jumia Technologies, The Amazon Of Africa, Is Popping Off

Jumia Technologies AG - ADR JMIA shares are trading higher by 4.43% to $4.95 Thursday morning after the company reported third-quarter sales results up from last year.

What Happened?

Jumia reported $50.50 million in sales this quarter. This represents an 18% increase over sales of $42.66 million in the same period last year. Additionally, the company expects FY22 adjusted EBITDA loss as low as $200 million or as high as $220 million.

Jumia says gross profit reached $33.0 million in the third quarter of 2022, up 29% year-over-year, the fastest growth rate in the past 9 quarters, supported by the marketplace revenue growth.

Jumia added that, on a constant currency basis, gross profit was up 43% year-over-year. Gross profit margin as a percentage of GMV reached an all-time high of 13.7%, partly as a result of the implementation of commission take-rate increases.

According to data from Benzinga Pro, JMIA has a 52-week high of $18.00 and a 52-week low of $3.65.

Posted In: why it's movingSmall CapMoversTrading Ideas