Why Marketplace Company Jumia Technologies Shares Are Seeing Blue Skies Today
Portfolio Pulse from Lekha Gupta
Jumia Technologies AG (NYSE:JMIA) shares surged 34.4% after reporting Q4 FY23 results, showing a revenue decline of 2% Y/Y but a significant reduction in operating loss and adjusted EBITDA loss. Despite a decrease in marketplace revenue, orders, active consumers, TPV, and GMV, the company improved its gross profit margin and reduced spending. Jumia holds a positive outlook for 2024, expecting an increase in orders and GMV.
February 15, 2024 | 5:38 pm
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Jumia Technologies AG shares jumped 34.4% following its Q4 FY23 earnings report, indicating a significant reduction in losses and a positive outlook for 2024.
The sharp increase in JMIA's stock price can be attributed to the company's successful cost reduction strategies and the narrowing of its operating and EBITDA losses. The positive outlook for 2024, with expected increases in orders and GMV, further fuels investor optimism. Despite the year-over-year declines in several key metrics, the improvement in profit margins and the significant reduction in losses are likely to be viewed positively by investors in the short term.
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