Jumia Update - Up 93% in just two trading days since I wrote about them.
Jumia is on a roll.
Just a mere 5 days ago, I posed the question about Jumia (JMIA): Can it continue to gain on the excitement around e-Commerce? The answer is a resounding YES. Post found here:
At the time of the post, the stock was trading at $10.89. Today, the company now trades at a price of $21, with after hours pricing showing a high of $22.71. At the closing price of $21, that's a whopping 92.8%. Today alone, the company jumped 35%.
So what gives? A simple answer: Online retail platforms are hot, hot, hot. Especially those that have the potential to be a leader in a relatively untapped market. With few players established players tapped into online retail in Africa, Jumia has joined the ranks of several others looking to carve out territory in niche market.
One only has to look at the likes of MercadoLibre (MELI), which focuses on Latin America, and Sea Limited (SE), which focuses on South East Asia, to see the potential of where Jumia could eventually go. Respectively they trade at $58.29 billion and $62.79 billion market caps. Jumia on the other hand trades at a mere $1.65 billion market cap based on the closing price.
Is this to say that Jumia is undervalued? Who really knows given all of these names are trading on popularity. Africa's GDP also pales in comparison to where the former's markets are in terms of total addressable market. But what is clear is that now is the time to move online, and those with a first-to-market advantage are surely being given the edge to nail down their competitive advantages.
Posted Using LeoFinance