Shares of African e-commerce giant Jumia plummeted on Wall Street Monday, wiping out much of the gains seen earlier this year. The stock opened sharply lower, trading at $4.35, a significant drop from its June peak of $13.10.
The disappointing performance comes just a week before Christmas, dashing investor hopes for a sustained recovery after a brief rally. Jumia’s market capitalisation has now fallen by more than half from its peak above $1.32 billion in June 2024. The decline reflects the ongoing challenges faced by the e-commerce player since its 2019 New York Stock Exchange (NYSE debut), a period marked by consistent financial struggles.
Optimistic for a turnaround, Jumia tapped Francis Dufay, a former CEO of Jumia Ivory Coast to run the company in November 2022. Dufay’s first act was to prune headcount by nearly half, cut advertising spending and customer incentives. Additionally, Jumia unbundled its food delivery service and exited countries that showed a lack of promise.
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