Jumia stock plunges to 52-week low at $2.39 amid market challenges

Published 02/28/2025, 09:32 AM
Jumia stock plunges to 52-week low at $2.39 amid market challenges

Jumia Technologies AG (NYSE:JMIA), the pan-African e-commerce platform, has seen its stock tumble to a 52-week low, with shares dropping to $2.39. According to InvestingPro data, the stock's RSI indicates oversold territory, while showing high volatility with a beta of 2.87. This latest price level reflects a significant downturn for the company, which has experienced a stark 1-year change with a decline of -60.1%. Despite maintaining impressive gross profit margins of 59.42% and a healthy current ratio of 1.77, the company faces headwinds with revenue declining 10.15% over the last twelve months. Investors have been cautious as the company grapples with the competitive e-commerce landscape and operational hurdles across its markets. The 52-week low serves as a critical juncture for Jumia, as it seeks to revitalize its growth strategy and regain investor confidence in the face of persistent challenges. For deeper insights into Jumia's financial health and growth prospects, access the comprehensive Pro Research Report available on InvestingPro.

In other recent news, Jumia Technologies AG reported its fourth-quarter 2024 earnings, with revenue reaching $45.7 million, significantly missing the forecasted $52.06 million. This represents a 23% year-over-year decline in revenue, highlighting ongoing challenges in the company's financial performance. Jumia's full-year revenue also saw a decrease, totaling $167.5 million, down 10% compared to the previous year. The company reported an adjusted EBITDA loss of $13.7 million for the quarter, with a loss before income tax increasing by 3% year-over-year to $17.6 million. Despite these results, Jumia projects a 15-20% growth in physical goods orders for 2025, aiming for a GMV of $795-830 million. The company plans to focus on operational efficiency and scaling volumes to achieve profitability. Jumia's strategic focus includes expanding international sourcing and strengthening partnerships with global brands. The company continues to face macroeconomic challenges, including currency devaluations, impacting its revenue and profitability.

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