10 Best German Stocks To Buy Now

5. Jumia Technologies AG (NYSE:JMIA)

Upside potential as of November 15: 75.54%

Jumia Technologies AG (NYSE:JMIA) is a pan-African e-commerce platform. The company’s platform comprises a marketplace, which links sellers with consumers. Its logistics service makes it possible for merchants to ship and deliver items to customers, and its payment service makes it easier for users in certain marketplaces to deal with one another.

Jumia Technologies AG (NYSE:JMIA) generates revenue through marketing and advertising, value-added services, commissions, fulfillment, and product sales. West Africa, North Africa, East and South Africa, Europe, and the United Arab Emirates are its geographical divisions. The West Africa segment accounts for the majority of the company’s revenue.

Jumia Technologies AG’s (NYSE:JMIA) Q3 2024 results were mixed, showing growth in GMV and active customers but also higher cash usage and EBITDA loss as a result of strategic expenditures. Despite the short-term cost increases caused by warehouse consolidation and higher marketing expenditures, efficiency and growth are anticipated in 2025. Expansion beyond major cities in Nigeria is encouraging, with upcountry orders growing 22% YoY, highlighting the company’s resilience in tough economic conditions.

2025 is a crucial “prove it” year for Jumia Technologies AG (NYSE:JMIA) because of its solid cash position and strategic foundation, even in the face of recent stock declines.

RBC Capital started covering Jumia Technologies AG (NYSE:JMIA) on November 13, 2024, with a $5 price target. In a research note, the analyst informed investors that Jumia is the biggest pan-Africa e-commerce vendor, offering an appealing combination of an underserved end market with a well-known brand, asset-light vertical integration, and a developing moat with possible longer-term possibilities.