Jumia was founded in 2012 and is headquartered in Berlin, Germany, and will not be available until the end of 2019.。Jumia Technologies shares open at 14.$50, quickly tripled, only to fall sharply over time, a common fate for many overhyped new stocks

Jumia has developed and is operating an e-commerce platform, logistics and inventory infrastructure, and proprietary payment systems to support online retail sales in Africa.。In its most recent earnings report, the company reported "a significant reduction in losses and is gradually becoming profitable."

Introduction to Jumia Technologies

Jumia Technologies operates an online retail marketplace primarily for consumers on the African continent, serving sellers and buyers alike.。The company was founded in Kenya in 2012 by founders Jeremy Hodara and Sacha Poignonnec, both former consultants at McKinsey & Company, along with colleagues Tunde Kehinde and Raphael Kofi Afaedor.

After initial confirmation of the business model, it quickly expanded to Egypt, Morocco, Ivory Coast, Nigeria and South Africa.。By 2018, Jumia had a solid footprint in 14 African countries.

There are more than 110,000 active sellers on the Jumia e-commerce platform, which also offers delivery support as well as various payment and financing schemes to benefit its consumer base.。By 2015, revenue soared to 2.$3.4 billion, more than double the previous year。The company's valuation quickly surpassed $1 billion, making it Africa's first "unicorn" company.

This success story is partly due to its wide product categories, including fashion and clothing, beauty and personal care, health products, home and lifestyle products, cleaning products, fast-moving consumer goods, smartphones and other consumer electronics。The company is also involved in services, offering restaurant delivery, hotel and flight reservations, classified advertising, in-flight recharge and instant delivery services.

In January 2019, the company changed its name from Africa Internet Holding GmbH to Jumia Technologies AG。Two months later, Mastercard became a high-profile investor, adding €50 million to the company's stake.。A month after the capital injection, Jumia went public on the New York Stock Exchange, raising 1.$9.6 billion in new funding。It opened at 14..$50, but analysts raised the price to between $27-40 in subsequent reports

Jumia shares quickly peaked near $50 before falling back。However, a group of short sellers released a report accusing the company of fraud in its offering documents.。Shares fell sharply until major investor Citigroup issued its own report, dismissing all allegations.

Still, the company suffered huge losses in 2019, and during COVID-19, Jumia's share price started to recover。After a false start, the share price soon soared from $12 to a new high above $69.

Critics say the company is overvalued, expanding too quickly, entering too many markets and offering too many products.。Management decided to close operations in Tanzania, Cameroon and Rwanda, but still maintain online commerce through selected portals。The company also outsources travel and hotel booking services to Travelstart while reducing its reliance on high-cost electronics, which tend to be one-time sales rather than duplicates.

Restructuring plans never happen overnight.。One analyst said: "Jumia is a company in transition and has shifted its business model to third-party market sales, which has severely affected its recent growth.。In addition, it aims to reduce its dependence on one-time sales such as electronic products and shift to more frequent product categories such as clothing and food.

Jumia Technologies Share price (End of 2023）

Africa is the fastest-growing region in the world, which is positive in the near and long term.。Jumia's website also topped the internet traffic ranking report, and the company has also won several prestigious awards.。

However, many investors and analysts have expressed great concern about the company.。And because of these concerns, the market will not be bullish on the company's growth or gross margin

Jumia Technologies' share price forecast for 12 months also involves a degree of speculation。According to TipRanks, only one analyst currently has a forecast for the stock, with a "hold" rating and a price target of $5 per share.

Jumia Technologies Long-Term Forecasts

Jumia has yet to turn a profit, and to predict what it will look like five years from now, you have to be confident that the business won't be swallowed up by big competitors in Africa.。With no earnings to speak of at this stage, the future outlook will depend on the assumed growth rate, the strength of the business model and whether management is focused on the long-term model.

While only one analyst currently sees JMIA as "holding," there are several reasons why investors can be bullish on its long-term prospects.。One clear difference is that the company's vision has been tried and successful in other major markets。If you buy at the opening of Amazon's IPO, you'll get a stunning return of 160,000%。Even its South American cousin, MercatoreLibre, has returned 5,000%。From this perspective, JMIA definitely has the potential to rise

Jumia is also positioned to capitalize on Africa's booming population growth (said to be the fastest-growing region in the world) and the willingness of African citizens to embrace e-commerce and everything it brings.。The company's inventory management and transportation logistics construction costs are high, but they are necessary investments for the future.。In addition, the company's payment system has not yet been monetized, but this could add another source of revenue for the company.

However, barriers are also related to growth.。The company recently reported a 28% decline in quarterly active customers and a decline in gross merchandise sales (GMV).。While the plan looks good, at some point the growth of GMV has to go hand in hand with the acceleration of the customer base

Jumia is a future-oriented company。After years of experience in the pan-African market, it is assembling components in a better way, and the addressable market is considerable.。The company currently operates in 11 countries where 600 million people could be potential buyers of its products and services.。If Jumia can successfully execute its business model, even if only modestly, the potential is considerable.

If everything goes according to plan, which means accelerated growth and profitability will soon become a reality, then it will be a company to watch。So far, however, it has fallen short of expectations.。Africa's digital opportunity must become a reality, and JMIA's stock can reach that value

Is Jumia Technologies worth buying?

As one analyst previously described the Jumia Technologies buy-or-sell demographics: "The opportunity is real, but not as widely adopted as you might think."。In other words, the key variable is to convince African consumers to participate in the Jumia revolution.。Similar e-commerce revolutions have occurred in the United States, China and South America, but whether online buying in Africa will meet expectations is still uncertain