Tesla Shares Fall Amid Tech Selloffs and Jumia Shares Sharply Fall After Stock Offering ๐Ÿ“‰

Tesla Shares Fall Amid Tech Selloffs and Jumia Shares Sharply Fall After Stock Offering

Tesla

On Thursday, shares of Tesla fell sharply, closing down 6.93%.

Shares of the electric vehicle maker fell after a bearish day in the market for tech stocks.

On Wednesday, the Nasdaq Composite and S&P 500 closed at record highs after the Federal Reserve said it would keep interest rates near zero through 2023 and predicted a quick economic recovery. Gains in tech stocks were erased on Thursday as the Nasdaq composite plunged 3.02% and the S&P 500 fell 1.48%.

Additionally, the 10-year Treasury yield rose to 1.75% on Thursday amid the Fed’s continued support for the economy and tolerance for temporary inflation this year.

Despite the stock’s retreat Thursday, Tesla’s shares are up over 650% in the past 12 months.

Jumia Technologiesย 

On Thursday, shares of Jumia Technologies plunged, closing down 15.14%.

The African e-commerce company’s shares fell after a bearish day in the market for tech stocks, and after the company filed a secondary stock offering.

Jumia said it would sell roughly 9 million American depositary shares currently valued at nearly $400 million in a filing Thursday morning. The offering would result in a 10% dilution of existing shareholders. The revenues, according to Jumia, will be used for general corporate purposes.

Jumia, Africa’s leading e-commerce company, is still burning cash as it invests in African countries’ infrastructure, resulting in a free-cash-flow loss of over $100 million last year.

Shares of Jumia are up over 1,500% in the past 12 months.

I am not a financial advisor and my comments should never be taken as financial advice.ย Investments come with risk, so always do your research and analysis beforehand.

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