Jumia Technologies (JMIA) Plunges 11.21% as Revised 2025 Loss Guidance Sparks Investor Skepticism

Jumia Technologies (JMIA) fell to its lowest level so far this month on Nov. 13, with an intraday decline of 10.32%. The stock has dropped 11.21% over two consecutive sessions, extending a downward trend that has raised concerns about the pan-African e-commerce platform’s financial trajectory.

The selloff followed mixed third-quarter results, where Jumia reported a 25% year-over-year revenue increase to $45.6 million and narrowed operating losses to $17.4 million. However, the company revised its 2025 guidance to a $50–55 million loss before tax, widening from its prior forecast of $45–50 million. The updated outlook, coupled with slower-than-expected progress toward profitability, triggered investor skepticism. Despite strong regional growth in Nigeria and cross-border commerce, liquidity constraints and a $15.8 million reduction in cash reserves to $82.5 million as of September 2025 further weighed on sentiment.

Jumia’s stock volatility reflects a broader tug-of-war between operational resilience and financial sustainability. While gross merchandise value rose 21% to $197.2 million and active customers grew 23% year-over-year, the company’s path to breakeven by Q4 2026 remains clouded by high operating costs and competitive pressures. CEO Francis Dufay’s long-term profitability goals face immediate headwinds as investors balance optimism over market expansion with concerns about capital efficiency and debt risks. The coming quarters will test Jumia’s ability to translate growth metrics into a credible path to profitability.

{}