Jumia Technologies Stock Dives 9% on Analyst Downgrade Amid Working Capital Concerns
Jumia Technologies' shares plummeted 9.3% Friday after Aletheia Capital analyst Nirgunan Tiruchelvam double-downgraded the stock from buy to sell. The bearish call cited unsustainable improvements in net working capital and a premium valuation at 153% gains since August.
Tiruchelvam's $7.50 price target sits 30% below current levels, questioning the sustainability of recent tariff-driven momentum. While Chinese vendor concessions offered hope for profitability, the abrupt reversal highlights risks in unproven emerging market e-commerce plays.