Why Jumia Technologies Rallied 16.2% in November, Even During a Middling Month For Stocks

Core Insights - Jumia Technologies experienced a 16.2% stock rally in November, driven by a sell-side analyst significantly raising the price target after the company's earnings report and Investor Day [2][3] Financial Performance - In Q3, Jumia reported a 25% revenue increase to $45.6 million, with gross merchandise volume (GMV) rising by 21% and operating losses narrowing by 13% to ($17.4 million) [4] - The company has completed a multi-year restructuring phase aimed at improving profitability, which involved exiting unprofitable markets and streamlining operations [5] Long-term Outlook - Management provided optimistic long-term targets, projecting profitability and positive free cash flow by 2027 [6] - Jumia anticipates GMV growth at a 20% compound annual growth rate, increasing from $0.8 billion today to between $2.5 billion and $3.0 billion by 2030 [7] - The company plans to enhance profitability by increasing its "take rate" by 2 to 2.5 percentage points and reducing costs as a percentage of revenue as it scales [8]