Jumia's Partnership With UPS Is A Power Move

Summary

  • Jumia shares shot up 25% on April 4th in response to news of the company's latest partnership with UPS.
  • The company's recent earnings report showed improvements. The UPS partnership is simply a bonus.
  • Profitability is still a question mark for the African e-commerce company. But I do like where Jumia is heading.
  • Still a risky long-term play, Jumia could wind up being a multi-bagger for investors down the road.
  • It'll be interesting to see if Jumia shares retreat from this one-day spark or continue in an upward path.

Scooter Motorcycles of the delivery service firm Jumia logistics services parked.

Slimoche/iStock Editorial via Getty Images

What happened?

Jumia Technologies (NYSE:JMIA) finally caught a break on Monday, April 4th. The company announced a new partnership with United Parcel Service (NYSE:UPS), causing shares of the African e-commerce business

This article was written by

Experienced growth (at a reasonable price) investor primarily focused on the technology and consumer sectors.

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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