Sometimes investors seem to love Jumia Technologies (NYSE:JMIA), while other times they abandon JMIA stock for no apparent reason. This is a cycle which enterprising traders can capitalize on, with a buy-the-dip strategy.

Just to recap, Jumia is an e-commerce platform that’s huge in Africa. Moreover, the company has global ambitions, though market penetration in the highly competitive digital commerce space is always a challenge.

Also, the African continent presents its own issues to conquer, as not everyone has reliable Internet access there. Nonetheless, Jumia is making strides in expanding its business throughout the continent and elsewhere.

Plus, the company’s business model isn’t limited to selling products online. As we’ll see, Jumia also has a payments platform that’s gaining adoption, and should prove to be quite lucrative for the company.

A Closer Look at JMIA Stock

Whether the price action in JMIA stock is thrilling or disappointing, depends on your outlook and your time frame.

Just a year ago, the share price stood at approximately $8. The world was attempting to recover from Covid-19. Would Jumia thrive in this market scenario?

The answer is clearly yes, as JMIA stock vaulted to a 52-week high of $69.89 on Feb. 10, 2021.

I don’t know about you, but if I’m seeing returns in the hundreds of percentage points, I’m probably taking profits at that point.

Otherwise, you might get a harsh lesson on the effects of gravity.

Folks who chased JMIA stock near $70 were definitely punished as the share price slid over the following months, landing below $20 in early September.

Now, there are a couple of different ways to view this situation. You could say that the stock’s momentum is to the downside, so it’s best to just avoid it altogether.

Alternatively, you could consider that the correction in JMIA stock is overdone.

Along with that, there’s the possibility that the stock could double or triple if it makes another run for $70, assuming that Jumia is doing well as a business venture.

Steady Progress

So, let’s see how Jumia’s doing, fiscally speaking.

If you’ve read my other articles, you know that I love to rattle off triple-digit percentage stats.

In Jumia’s case, however, double-digit progress is just fine.

During 2021’s second quarter, Jumia’s orders increased by 13% year-over-year. There’s absolutely nothing wrong with that, even if it’s not a gigantic number.

Jumia’s fastest-growing platform category was food delivery. This segment posted its highest-ever number of quarterly orders, increasing nearly 60% year-over-year.

On top of all that, Jumia’s Value Added Services revenue increased by 10% on a year-over-year basis. This marks the fastest growth rate of the
past six quarters.

Don’t Forget About JumiaPay

Additionally, investors should take note of the progress that Jumia is making in its payments platform.

For the second quarter of 2021, JumiaPay transactions increased by 12% to a whopping 2.7 million. This represents the fastest JumiaPay transactions growth rate of the past four quarters.

Without a doubt, this improvement is facilitated by increasing adoption of the platform.

You just never know where you’ll see JumiaPay next. For example:

[I]n Morocco, the Jawaz solution is now available to customers on JumiaPay allowing them to recharge their highway toll fees on the JumiaPay app without the need to stop at physical tolls on their journey.

Furthermore, National Bank of Egypt, which is Egypt’s largest state-owned bank, “obtained an approval in principle from the Central Bank of Egypt to offer certain services in partnership with our JumiaPay business line.”

More specifically, these services are payment service provider, payment facilitation and payment aggregator for the processing of payments off-platform on behalf of third-party merchants in Egypt.

The Bottom Line

All in all, there certainly appears to be a dip-buying opportunity in JMIA stock today.

There’s ample evidence to show that Jumia is making steady progress. Not necessarily in the triple digits, but it’s notable, nonetheless.

And with the company making headway with JumiaPay, it’s easy to envision strong future growth for Jumia, as well as significantly higher prices in JMIA stock.

On the date of publication, David Moadel did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.