Jumia stock rallies 20% on future profit hopes
- Jumia's shares increased by 20% in early trading, climbing to $2.82.
- The company reported a wider operating loss of $18.7 million in Q1 2024, nearly doubling from $8.3 million in the previous year.
- Revenue for the first quarter declined to $36.3 million, down from $49.3 million year-over-year.
Jumia's strategic pivot towards underserved regions and its focus on fintech are commendable, yet the company must address the declining average order value and operational efficiency to ensure long-term profitability. The ambitious target for 2027 profitability raises questions about the sustainability of its growth strategy amidst ongoing macroeconomic challenges. Stakeholders should closely monitor the company's execution of its plans and the impact of external factors on its performance.
