Farfetch (NYSE: FTCH) stock price has exploded this month to print record highs above the $50 mark. This way, shares are now up over 300% since the beginning of the year.
Fundamental analysis: Sales soar
Farfetch, an online luxury fashion platform, posted a loss of $537 million to beat the market’s expectations for the third quarter. The company recorded $798 million in gross merchandise volume (GMV), which is by far the highest number reached in a single quarter so far.
“We believe we’re witnessing a paradigm shift in the way people buy luxury. From day one, Farfetch set out the differentiated vision to enable the luxury industry by building a full suite of capabilities to connect the creators, curators and consumers, who are the lifeblood of the luxury industry,” Jose Neves, the Founder, Co-Chairman & Chief Executive Officer of Farfetch, said.
A few days ago, Farfetch agreed a new partnership with Alibaba and Richemont to create a “Luxury New Retail” that will enable the company to have broader access to the Chinese market.
“This highly complementary partnership brings together some of the world’s leading luxury retail and technology platforms, representing another milestone in Alibaba’s strategy to meet the rapidly growing demand for luxury products in China,” said Daniel Zhang, Alibaba Group Chairman and Chief Executive.
Following strong results recorded in the quarter and a new partnership, Credit Suisse’s Stephen Juefore hiked the price objective on Farfetch to $43 per share (up from $35).
Technical analysis: Shares up 300%
Farfetch stock price gained 5.69% on Friday to close at $45.67 despite reaching levels above the $50 mark on stronger-than-expected quarterly earnings. This way, shares of Farfetch closed the week
