Jumia Technologies Stock Rockets 11% Today – Here’s What Fueled the Rally
Jumia’s shares just pulled off a gravity-defying leap—but is this the start of a real turnaround or another meme-stock mirage?
The catalyst? More hopium than hard data.
No earnings bombshell or partnership news triggered the surge. Just another day in the casino—sorry, 'market'—where retail traders pile into oversold names. Remember: Jumia’s still down 60% from its pandemic hype peak. Bulls see an African e-commerce play; skeptics see a cash-burning machine with identity crises (logistics! payments! groceries!).
Wall Street’s take: ‘Show me the path to profit.’
Analysts remain split—much like Jumia’s operational focus. The 11% pop looks dramatic until you realize the stock’s so volatile it makes Bitcoin look stable. One cynical truth? Short squeezes work wonders when volume’s thin.
Bottom line: In today’s market, fundamentals are optional. Momentum is mandatory. Just ask the bagholders of 2023.
A cautiously optimistic raise
That rather considerable hike was made by RBC Capital prognosticator Brad Erickson. He shifted his price target upward, to $6.50 per share from his preceding $5. Although not quite a bull, as he continued to rate Jumia stock as only a sector perform (hold), he made several bullish points in his research note detailing the change.
Image source: Getty Images.
Erickson's MOVE did not come out of the blue. It came several trading sessions after Jumia reported its second-quarter results.
These showed several encouraging developments, not least a 25% year-over-year improvement in total sales, to $45.6 million, topping the consensus analyst estimate of $43 million. This was accompanied by a 6% rise in gross merchandise value (GMV) to over $180 million. Management also raised full-year 2025 guidance for both the number of total orders and for GMV.
The company wasn't profitable according to several accounting line items, however, with operating loss deepening to over $20 million from the year-ago deficit of $16.5 million.
A break for breakeven
Erickson expressed a cautiously optimistic view of Jumia's second quarter, according to reports. The analyst zeroed in on the development of the order count, theorizing that it could bring the company to profitability sooner than expected. He speculated that it could meet the goal of hitting breakeven on the bottom line by the end of 2026.
