Will Alibaba Or Jumia Stock Grow More By 2022?

Every week, Benzinga conducts a sentiment survey to find out what traders are most excited about, interested in or thinking about as they manage and build their personal portfolios.

We surveyed a group of over 300 Benzinga investors on whether shares of Alibaba BABA or Jumia JMIA stock would grow the most by 2022.

Alibaba Vs. Jumia Stock

Alibaba operates China's most-visited online marketplaces- the consumer-to-consumer driven Taobao and business-to-consumer focused Tmall.

Overall, Alibaba's China marketplaces accounted for 68% of revenue in fiscal year 2019. Taobao generated revenue through advertising and other merchant data services and Tmall derived revenue from commission fees.

Jumia is a leading e-commerce platform in Africa. According to the company in 2019, more than 110,000 sellers, including local African companies and entrepreneurs have partnered with Jumia. 

The e-commerce platform directly provides more than 5,000 jobs and many more through their sellers and logistics partnerships. 

In a case for future growth, research by Jumia suggests less than 1% e-commerce penetration has occurred in Africa versus 12% in the U.S. and 20% in China.

Many respondents to our study shared a similar point of view regarding e-commerce market saturation globally, with one saying, "African e-commerce is generally untapped while Alibaba has to compete with a saturated Asian e-commerce market. Jumia will be Africa’s version of Amazon."

Overall, levels of sentiment were extraordinarily tight for this study as traders and investors expressed an near-equal weighted confidence for both e-commerce companies.

Fifty-one percent of respondents told us Jumia will grow more by 2022, while 49% believe Alibaba will experience greater gains by the end of next year.

This survey was conducted by Benzinga in December 2020 and included the responses of a diverse population of adults 18 or older.

Opting into the survey was completely voluntary, with no incentives offered to potential respondents. The study reflects results from over 300 adults.