JMIA Should I Buy
-
$
0.000
0.000(0.000%)
At close0.000(0.000%)Aft-market
ET
Loading...
Jumia Technologies AG is not a strong buy at this time for a beginner investor with a long-term focus. While the company shows promise in the African e-commerce market, recent financial performance, technical indicators, and market sentiment suggest it is better to wait for clearer signs of recovery or stability before investing.
The MACD is negatively expanding at -0.356, indicating bearish momentum. The RSI is at 25.555, suggesting the stock is nearing oversold territory but not yet providing a clear signal. Moving averages are converging, and the stock is trading near its S1 support level of 9.769, with further downside risk toward S2 at 8.743.
Jumia's Q4 revenue grew 34.4% YoY to $61.4 million, indicating strong top-line growth. Analysts remain bullish on the company's long-term potential in the African e-commerce market, with price targets as high as $18 and expectations of double-digit growth and improved EBITDA margins by 2030.
The company reported a wider-than-expected Q4 loss of $0.08 per share, leading to a 15.8% drop in stock price. Concerns over profitability persist, and the MACD and RSI indicate bearish momentum. No significant hedge fund or insider trading activity suggests limited confidence in the short term.
In Q4 2025, revenue increased by 34.4% YoY to $61.4 million, but the company reported a net operating loss of $10.6 million. In Q3 2025, revenue grew 25.26% YoY, but EPS dropped by 12.50%, and gross margin declined by 17.02%, reflecting ongoing profitability challenges.
Analysts are optimistic about Jumia's long-term potential, with multiple Buy and Overweight ratings and price targets of $16-$18. They highlight the company's improved growth visibility and potential to dominate the African e-commerce market. However, near-term profitability concerns remain a significant hurdle.
