Jumia Technologies (NYSE: JMEA) Shares rose in Thursday trading. The African e-commerce company’s share price ended the day’s trading 19.7% higher and was up 26.1% earlier in the session.
After the market closed yesterday, Jumia published preliminary unaudited key performance indicators (KPIs) for the two-month period ending November 30. The company reported better-than-expected growth for orders placed, active customers and gross merchandise volume (GMV). During a major sales period, investors bid up the stock in response.
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During the two-month period ending November 30, Jumia recorded 4.3 million processed orders – an increase of 18% compared to the same period a year earlier. Of these orders, 62% were placed during the company’s Black Friday event. Total active customers increased by 9% year over year, and the value of total sales increased by 33%. These reported results and comparisons exclude contributions from the South African and Tunisia markets, which the company will exit by the end of the year.
Jumia stock has been very volatile this year. The company’s stock price is up about 28.5% during 2024 trading, but it’s also down about 69% from its 52-week high. Looking further, the e-commerce specialist’s stock price is trading at roughly 93% off its all-time high shortly after the company’s initial public offering in 2019 (IPO).
While the long-term expansion outlook for e-commerce services in Africa is very promising, Jumia’s operation as a publicly traded company has been characterized by mixed performance and concerns about business visibility and outlook. The company’s recently reported outlook for performance over the recently concluded two-month period suggests encouraging momentum on some fronts, but it remains to be seen to what extent it can build on recent momentum.
The significant growth of GMV and the total number of orders placed during this period is a clear bullish indicator. But with 62% of total orders across the range placed during the company’s Black Friday event, it remains to be seen how successful the company is at maintaining momentum outside of promotional periods.
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