JMIA, SFTBY, BABA In a report published on the firm’s site over the weekend, Andrew Left’s Citron Research says that “one of two things happens to Jumia over the next five years: The stock goes well over $150 a share or the African people become the first people on earth to reject e-commerce.”
“With the recent Stripe acquisition and for anyone who knows the forward-moving tech-savvy youth of Nigeria, you understand that scenario 2 is not an option… Yes, the business is going to have lumps and growing pains, and hopefully Citron helped Jumia clean up their act after we exposed some fraudulent business practices last year. With a market cap of just $1 billion despite being the largest e-commerce platform in Africa shows investors’ complete shortsightedness for the inevitable future of a digital Africa. We applaud the company for its recent political stance to honor the victims of the protests to end police brutality in Nigeria.
African Big Tech is not afraid to get political,” Citron adds. The report follows a tweet by the short-seller saying that while Jumia (JMIA) would comment on any rumor, a Softbank (SFTBY) or Alibaba (BA)A investment/partnership is “inevitable.”