The Germany-based e-commerce concern Jumia Technologies AG (NYSELJMIA) released its first-quarter results this morning -- its first since going public in mid-April -- to disastrous results. The so-called "Amazon of Africa" company reported smaller-than-expected growth in revenue from last year, and a big quarterly loss. In response, JMIA shares are down 12.2% at $21.50 -- pacing for their lowest close ever.
The company's earnings results follow Citron Research's accusation of fraud last Friday. The stock, which debuted at $14.50 a share on April 12, quickly shot up over 75% on its first day of trading. The equity continued its climb before sputtering out just below the $50 level. It's been all downhill from there, with JMIA eyeing its eighth straight day in the red.
The controversy surrounding the newly minted stock is not lost on the brokerage bunch. Currently, there isn't a single bull note on the books, with six analysts dishing out a tepid "hold" rating, and one calling it a "strong sell." The stock's 12-month target price of $38.60, however, is at a roughly 80% premium to current levels.
It looks like options bears are already starting to pile on the security, too. During the past two weeks long puts have more than doubled calls on the the International Securities Exchange (ISE), Chicago Board Options Exchange (CBOE), and NASDAQ OMX PHLX (PHLX). Plus, today's plummet just landed JMIA on the short sale restricted list.