Jumia Technologies Plants An Exclamation Mark On Downtrend With A Big Spending Run-Up

Ahan Analytics
5.01K Followers

Summary

  • In its Q3 2021 earnings report, Jumia Technologies revealed a large spending run-up in sales and marketing.
  • The company is investing in scaling the business, but a fresh plunge in the stock price suggests investors are not happy with the returns.
  • The stock has nearly reversed all its gains from an important bottom from earnings a year ago. This price level represents important support.

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Jumia Technologies (NYSE:JMIA) is likely still a key participant in the future of commerce in many African countries. However, the pandemic created a different path than the one experienced by retailers in countries like the United

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Dr. Duru has blogged about financial markets since the year 2000. A veteran of the dot-com bubble and bust, the financial crisis, and the coronavirus pandemic, he fully appreciates the value in trading and investing around the extremes of market behavior. In this spirit, his blog "One-Twenty Two" (https://drduru.com/onetwentytwo/) delivers a different narrative for students and fans of financial markets. Dr. Duru challenges conventional market wisdoms and offers unique perspectives. The blog posts cover stocks, options, currencies, Bitcoin, and more, while leveraging the tools of both technical and fundamental analysis for short-term and long-term trading and investing. Some of these ideas and analyses are also featured here on Seeking Alpha.Dr. Duru received a B.S. in Mechanical Engineering (and an honors degree in Values, Technology, Science and Society - now simply STS) from Stanford University. For graduate studies, Dr. Duru went on to earn a Ph.D. in Engineering-Economic Systems (now Management, Science, and Society). Dr. Duru's work experiences include:*Independent consulting in operations research and decision analysis*Management consulting in product development and technology strategy*Price optimization software for computer manufacturers and internet advertising (including a shared patent for methodology)*Business Intelligence and Data Analytics, including some Data Science and Data EngineeringConsulting practice: https://ahan-analytics.drduru.com/

Analyst’s Disclosure:I/we have a beneficial long position in the shares of JMIA either through stock ownership, options, or other derivatives. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.

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