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Jumia Technologies AG (NYSE: JMIA) is the largest e-commerce company in Africa and should ultimately be valued at more than just $3.5 billion, tech venture capitalist Gene Munster said Wednesday on Benzinga's PreMarket Prep show.
About Jumia: Jumia's stock was trading as low as $2.15 in early 2020 and was valued at a few hundred million dollars. Today, the company is worth around $3.5 billion and has further upside potential over the long-term as it continues to build out its infrastructure, Munster said.
When the stock was trading in the single-digits, it "didn't pass the basic sniff test," he said, adding that the company deserves credit for doing a "great job" of navigating through the COVID-19 pandemic.
Related Link: Will Alibaba Or Jumia Stock Grow More By 2022?
Jumia As A Long-Term Holding: Buying a stock like Jumia for a few weeks could be dangerous, as the stock's massive gains in 2020 mean it could lose 25% in value even after reporting "somewhat positive" earnings, Munster said.
The Loup Ventures managing partner said he recommends investors perhaps wait for a pullback before buying the stock.
Watch to the full interview with Gene Munster in the clip below, or listen to the podcast here
PreMarket Prep is a daily trading show hosted by prop trader Dennis Dick and former floor trader Joel Elconin. You can watch PreMarket Prep live every day from 8-9 a.m. ET Benzinga's YouTube channel, and the podcast is on Spotify, iTunes, Google Play, Soundcloud, Stitcher and Tunein.
Photo courtesy of Jumia.
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