It is getting to 24 hours since the bombshell accusation that Jumia is a “fraud”. Yet, as I write, Jumia is yet to put out a statement. People, this is America where making money is also entertainment. You cannot have equities in the market and not have your investors’ relations unit ready to go to war.
Jumia has been brutally “attacked”, it needs to return with thorough explanations. If it delays more hours, U.S. Securities & Exchange Commission (SEC) can take severe actions on it. I do hope it is already talking with SEC as the lawyers are gathering: “”We’re focused on investors’ losses, whether the matters raised by Citron are correct, and whether investors may have been misled,” said Hagens Berman partner Reed Kathrein.” Yes, the adverts are out and soon, it will be class action! American trial lawyers cannot see a better target!
Jumia has lost 25% of its value so far today. Broadly, it has lost more than $2 billion since the IPO closing number: from total market cap of $3.9 billion to $1.59 billion now. Yet, it began from $0 and rose to $3.9 billion. Nothing has happened – we must wait to understand its trajectory after the next two quarterly earnings.
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