- Shares of Farfetch (luxury online clothing retailer) have collapsed.
- Looks like a huge over-reaction to slowing GMV and an acquisition.
- In fact, GMV only slowed a tiny bit and the deal looks interesting (a vertical integration).
- More concerning is the departure of the COO (online retail is an operationally heavy business).
- FTCH trades below 1x GMV – attractive if 40%+ growth can continue.
Common Sense Disclaimer. We plan to ponder about stocks and other investments here on Snippet. Some will look attractive and some we might recommend. Some we are buying/own ourselves (always disclosed). You should always do your own work, use common sense and invest responsibly!
