Dear readers, did you invest in the Amazon stock of Africa? This African-based stock has some of its biggest customers in Apple, HP and Huawei. The company behind this stock created a platform to make transactions easier between buyers and sellers in places where traditional retail can be difficult for consumers’ access.
The stock whose IPO price was USD $14.50, close more than 75% higher on its first day of trading last year at USD $25.46. Since then, the stock has reached a 52-weeks high of USD 40.40.
I am talking about Jumia Technologies (NYSE: JMIA), did you invest in this stock?
If you have not invested in Jumia Technologies, congratulations to you! Since reaching the 52-weeks high of USD 40.40, Jumia stock had gone on to reach a 52-week low of USD 2.15. This is more than 85% decline from Jumia’s IPO price! Jumia Technologies stock traded at USD 4.25 as of yesterday.
Naturally, when a stock like Jumia was touted in the name of an Amazon-like stock, this had me interested during Jumia stock debut last year. Even when Jumia stock price was skyrocketing with some market commentators continuing to comment that the growth potential of the stock was immense, I had some temptation to invest in the stock at that time too. But looking at the overall picture, I held on to my belief that the infrastructure of Africa is still challenging for e-commerce stock and hence I refrained from investing in Jumia stock.
As an investor of many years, I could really relate to the fact that on and off there have been many stocks touted as “multi-baggers” stocks that emerge on the investors’ radars. In my early years of my investing, I dabbled in several of these Singapore stocks and ended up losing my capital. The reality is that only a fraction of so-called multi-bagger stocks could turn out as the next Amazon, Ali Baba or Tencent stocks.
I have since moved on to a profitable investing strategy.