Entering text into the input field will update the search result below

Farfetch: Investors Who Hold Their Nose In The Water Now Can Enjoy Tremendous Long-Term Gains

Dec. 01, 2021 8:19 AM ETFarfetch Limited (FTCH) Stock38 Comments
Gary Alexander profile picture
Gary Alexander


  • Shares of Farfetch have seen a harrowing 40% correction this year.
  • The stock's losses have accelerated after the company's recent Q3 earnings release.
  • In spite of the pessimism, Farfetch managed to continue growing at a respectable >30% y/y pace, while also tilting to positive adjusted EBITDA margins.
  • Farfetch is one of the only e-commerce companies to have cracked the luxury fashion market, a space that Amazon has tried and failed to infiltrate.
  • I do much more than just articles at Daily Tech Download: Members get access to model portfolios, regular updates, a chat room, and more. Learn More »

Exterior Of Clothing Store With Shoes And Other Accessories Displaying In Showcase

onurdongel/E+ via Getty Images

Even though the broader market continues to sit near all-time highs, it's largely large-cap stocks that are holding the major indices at records. Small and mid-cap growth stocks, however, have quickly fallen out of favor this year, and though it's

For a live pulse of how tech stock valuations are moving, as well as exclusive in-depth ideas and direct access to Gary Alexander, subscribe to the Daily Tech DownloadHighly curated focus list has consistently netted winning trades of 40%+.

This article was written by

Gary Alexander profile picture
With combined experience of covering technology companies on Wall Street and working in Silicon Valley, and serving as an outside adviser to several seed-round startups, Gary Alexander has exposure to many of the themes shaping the industry today. He has been a regular contributor on Seeking Alpha since 2017. He has been quoted in many web publications and his articles are syndicated to company pages in popular trading apps like Robinhood.

Analyst’s Disclosure: I/we have a beneficial long position in the shares of FTCH either through stock ownership, options, or other derivatives. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.

Seeking Alpha's Disclosure: Past performance is no guarantee of future results. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. Any views or opinions expressed above may not reflect those of Seeking Alpha as a whole. Seeking Alpha is not a licensed securities dealer, broker or US investment adviser or investment bank. Our analysts are third party authors that include both professional investors and individual investors who may not be licensed or certified by any institute or regulatory body.

Recommended For You

Comments (38)

So far this hasn’t worked out. Any thoughts on this stock as it’s dropped half from when you recommended it! Thank you
@cprauseusa It’s been brutal for $FTCH investors. I still like the company and mgmt a lot. There’s still potential for a deal with Richemont. Their entry into beauty could also provide a boost. I feel the stock is a steal at current levels, but I also understand why it’s been hammered, and why it could get hammered more if the Q4 ER and/or call disappoint. They need to show progress towards becoming a profitable business. China/Xi remain a large risk factor as well.
@MRakowski thank you
Greenhorn Investor profile picture
Thank you for the article
this will be a good investment for those that add here. $100 stock one day not far out
@RickyTan any more colour you can add to this Stock or luxury ecommerce in general? What would be good resources for learning more?
@poorbeginner Business of Fashion is a great site to begin with. Contributors Doug Stephens (The future of retail) and Luca Solca are especially recommended
@RickyTan Agree that BOF is very helpful. Jing Daily is also useful for information on the China Luxury fashion market
@RickyTan thanks man, enjoy your comments.
SBSisHim profile picture
Thanks for the article Gary.
Any comments on -
-the VERY weak guidance for q4
-Tencent converting shares causing significant dilution to the stock.
I think these issues need addressing in any bullish and balanced article on Farfetch.
@Frank Lind the stock is crashing down like a rock
@Alex the GOAT ye.. wild. I like it here but calling a bottom is tough.
@SammyDaBull23 i think it should be the bottom. How low can it go?
what, pray tell, is $901,000 gain on assets held and remeasurements? How can they put un-realized gains of a basket of unsold goods into the P+L? Who verifies this?
@charmion It’s a derivative contract that hedges an older convertible financing. It’s a non cash item that goes down when the market price of the stock goes up, and up when the stock price goes down (e.g. it’s a put contract on the stock)
Kennyphobia profile picture
what do u think of China’s common prosperity?
@Kennyphobia Not an issue for luxury companies. Most of their clientele are not super wealthy.
Agreed, long.
I work in the industry. There is literally ZERO competition in luxury market. The only competitor on scale, YNAP, is loosing market share and importance season by season and might be taken over. I don't think you can be any more dominant in any industry than Farfetch is in luxury.
@RickyTan Thanks for the insight. What about Mytheresa?
@lucifer sam Mytheresa is profitable, growing fast, and underrated.
@Christian Louis Boutin Mytheresa is underrated agree. But it's nothing groundbreaking, its a traditional retailer following a traditional buying products - selling with a 2.x margin scheme. They just do it very smart and efficiently.
Disagree with this article? Submit your own. To report a factual error in this article, . Your feedback matters to us!

About FTCH

SymbolLast Price% Chg
Market Cap
Yield (TTM)
Rev Growth (YoY)
Short Interest
Prev. Close
Compare to Peers

More on FTCH

Related Stocks

SymbolLast Price% Chg
To ensure this doesn’t happen in the future, please enable Javascript and cookies in your browser.
Is this happening to you frequently? Please report it on our feedback forum.
If you have an ad-blocker enabled you may be blocked from proceeding. Please disable your ad-blocker and refresh.