Jumia might rebound after GMV disappointment, but not too much. – Idaho Reporter

NYSE

Jumia might rebound after GMV disappointment, but not too much.

It was a red Wednesday for all JMIA stock holders as Jumia Technologies shares plunged almost 20% in one trading day.

But how and why this happened? Why is JMIA stock price down when it should go up on great earnings? The reason behind this fall sits in the GMV numbers.

What is GMV? GMV or “Gross Merchandise Value” corresponds to the total value of orders for products and services. Even though GMV was up for almost all e-commerce companies in 2020 (for obvious reason) this was not the case for Jumia Q2 2020 results.

And this happened despite a 40% surge in new customers and a 8% increase in orders, YoY.

The good news for Jumia

But not all is bleak for JMIA because during the not-so-good trading day one of the better Wall Street analysts maintained a BUY rating for JMIA shares with a $15 target.

It is Mark Mahaney from Canadian based RBC Capiatal that expects JMIA share price to go where it was yesterday.

 

Even though this seems like a good news for JMIA, I would say that investors are so greedy right now that $2 jump is not something that will raise many eyebrows. JMIA needs to step up the game.

Share your thoughts

Theme by Anders Norén