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JMIA Stock Climbs 25% After Jumia Reports Q1 Results

  • Jumia Technologies (NYSE:JMIA) just reported first-quarter earnings
  • The company displayed consistent growth, hinting at a path to profitability
  • JMIA stock has been rising steadily all day as a result
Jumia (JMIA) logo on a cellphone with a flower
Source: farzand01 / Shutterstock.com

Today, Jumia is among the top market movers after releasing a positive earnings report. This e-commerce conglomerate allows customers to access goods and services by providing logistics and payment support. If its Q1 earnings results are any indication, Africa’s e-commerce boom is alive and well, too. JMIA stock jumped in pre-market trading today and shows no signs of slowing down.

Since markets opened, JMIA has been climbing at a very fast pace, displaying significant growth. As of this writing, shares are up more than 25% for the day. For the first time in more than a month, this stock is finally on its way back up after declining steadily throughout the quarter.

What was in the earnings report that sent Jumia shooting up? Let’s take a look.

What’s Happening with JMIA Stock?

Jumia displayed impressive growth in Q1 for a few key areas. Quarterly active consumers increased from 2.4 million to 3.1 million. Gross profits also reached $27.7 million, a gain of roughly 13%. The company even reported that revenue grew by 44% year-over-year (YOY), a high for the past nine quarters. Jumia’s gross merchandise volume (GMV) and order growth rates increased 27% and 40% YOY respectively as well.

In a statement, co-CEOs Jeremy Hodara and Sacha Poignonnec laid out the finer points of the report:

“We remain focused on taking the business forward on our path to profitability, driving faster usage growth with improved levels of marketing efficiency […] We are executing on our strategy with discipline and consistency. Our focus continues to be on making Jumia a compelling destination for the everyday needs of African consumers and a growth engine for sellers and businesses in Africa and beyond.”

Company management did note that Jumia is still increasing its investments in marketing. However, this did not pose much of an effect on profits for the quarter. The company also reported lower-than-expected quarterly losses, adding yet another positive driver for JMIA stock.

What It Means

All signs point to a profitable future for Jumia currently. The company is making noteworthy strides toward becoming “the Amazon (NASDAQ:AMZN) of Africa.” While the continent’s economic landscape does present challenges, InvestorPlace contributor Bret Kenwell believes JMIA stock is ready to pop. The company’s recent Q1 earnings report suggests as much, too.

As TechCrunch reports, Jumia’s winning season should remind investors that Africa’s e-commerce market is mid-boom. This company is best-positioned to corner that market. Looking forward, investors should pay close attention to JMIA stock as it continues its positive growth trajectory.

On the date of publication, Samuel O’Brient did not hold (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.

Samuel O’Brient has been covering financial markets and analyzing economic policy for three-plus years. His areas of expertise involve electric vehicle (EV) stocks, green energy and NFTs. O’Brient loves helping everyone understand the complexities of economics. He is ranked in the top 15% of stock pickers on TipRanks.


Article printed from InvestorPlace Media, https://investorplace.com/2022/05/jmia-stock-climbs-25-after-jumia-reports-q1-results/.

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