After its 2019 IPO was pumped as the "Amazon of Africa," JMIA quickly reached a high of over $40 within a week of IPO before falling to the single digits only months later.
It continues to deal with the internal and external challenges of doing business in Africa. But I do admire their long-term vision of massive African e-commerce adoption which keeps them moving forward even if they occasionally have to take a few steps back.
Fast forward to 2020 and the coronavirus sell-off brings JMIA to a new low of $2 and change per share. Since then the stock has ran as hopes and earnings results show that they will benefit from the wave of e-commerce adoption sweeping the world.
They reached $10 a share earlier in the week; quadrupling from their March lows. They also announced this week that they would raise capital, driving the share price down over 10% in a day as investors weighed the continued hype versus the very real dilution.
Generally it makes sense for a growing company to take advantage of a rising stock price by raising capital, but is Jumia's future indeed as bright as it thinks it is?
I own an insignificant amount of them now as I still see the company and its ambitions as speculative; but the story is compelling.
Submitted July 23, 2020 at 08:15PM by GromGrommeta https://ift.tt/2WOmCaW
