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When I wrote about the “primal panic” in shares of Jumia Technologies (NYSE:JMIA), I noted that the company would need to re-earn the confidence of investors in the wake of its
A Fresh Reset For Jumia Technologies
Summary
- Jumia's Q3 results showed mixed performance with positive growth in active customers and GMV but increased cash usage and EBITDA loss due to strategic investments.
- Warehouse consolidation and increased marketing spend temporarily raised costs but are expected to drive efficiency and growth in 2025.
- Expansion beyond major cities in Nigeria is promising, with upcountry orders growing 22%, highlighting Jumia's resilience in tough economic conditions.
- Despite current stock declines, Jumia's strong cash position and strategic groundwork set up 2025 as a critical "prove it" year, maintaining a strong buy rating.
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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