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Farfetch: Short Term Challenges, Multiple Long Term Positives

Apr. 03, 2022 9:14 AM ETFarfetch Limited (FTCH)8 Comments
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  • Systemic challenges have hit Farfetch's stock price.
  • Underlying business still strong.
  • Multiple long term positives to drive the business.

Palm Angels - Runway - Milan Fashion Week Fall/Winter 2022/2023

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Online luxury e-commerce platform Farfetch (NYSE:FTCH) has seen its share price sink over the past year; Farfetch is down nearly 70% over the past year, and more than 50% year to date. The stock has been dropping over the

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Long only, focused on high quality businesses with economic moats and solid business fundamentals. Sector and geography agnostic. Long term investment horizon. None of the articles constitute investment advice.

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Comments (8)

" In 2019, Farfetch paid USD 675 million to acquire luxury brand development and distribution platform New Guards Group and its portfolio of brands including Off-White ...."

I thought they bought the right for 5 years only ... beyond the death of Abloh, he did sell share of the actual company to LVMH, no ?
LD Investments profile picture
@Amstragram Farfetch acquired New Guards Group and is the current owner of New Guards Group. New Guards Group is a luxury brand development and distribution platform with a portfolio of brands for which NGG has the license to manage their production and distribution, but has an ownership in only some of the brands it licenses. Off-White was owned by its founder Abloh who later sold a majority stake to LVMH before his death. NGG's Off-White license is valid for the next 20 years according to some sources.

Most people are either value investors that buy low growth stocks and hold them, or growth investors that do a lot of trading. It’s very rare to find someone who buys high growth stocks and holds them for years. Just remember, sometimes the most brilliant thing is TO DO NOTHING!
PauloCostaSilva profile picture
100B billion company in 10-15 years ;)

Actually in the last media conference call. Jose Neves -founder and CEO- said that his compensation package is tied to a stock price of 250 dollars which is more than 100 billion market cap. There is a timeline limit of 7 years left from now to receive the compensation. It just says this is what the management believe they can achieve within this timeline. This can be found in SEC filling 6-K. Link below for the actual filling

PauloCostaSilva profile picture
@FirasMHM i absolutely believe $FTCH is a new $EL in the making.
@PauloCostaSilva el? why them
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