Farfetch Ltd (FTCH)

Shares of Farfetch Ltd (FTCH) dropped by 53.74% from $2.10 to $0.9714 in the trading on Wednesday, November 29, 2023. The reason why FTCH is down today is due to a series of unfavorable developments that raised concerns among investors and led to a sell-off of the company's stock.

• Earnings Delay and Guidance Withdrawal: Farfetch announced the unexpected delay in the publication of its third-quarter results, which were originally scheduled to be released today. The delay came as a surprise and left investors wondering about the reasons behind it. Moreover, the company chose to withdraw all of its previously issued guidance, leaving a void in terms of future expectations.
• Go-Private Deal Uncertainty: Adding to the uncertainty, recent reports cast doubt on Farfetch's potential to go private. Previously, the company's valuation had received a boost due to the prospect of a go-private deal. However, subsequent developments seemed to deflate this possibility, further undermining investor confidence.
• Richemont Partnership in Jeopardy: Farfetch had also been pursuing a significant partnership with Richemont, aiming to acquire a 47.5% stake in Richemont's YOOX Net-a-Porter online fashion business. However, this partnership now appeared to be at risk. Richemont's management publicly stated that they had no intentions of investing in Farfetch, casting uncertainty over the collaboration.
• Speculative Outlook Deepens: Farfetch's already speculative outlook became even more uncertain due to these developments. The company's sudden announcement of the earnings delay without providing clear reasons raised questions about its financial situation and accounting practices. Investors reacted strongly to these negative developments, leading to a sharp decline in Farfetch's stock price. In summary, the combination of the earnings delay, withdrawal of guidance, uncertainty surrounding the go-private deal, and potential partnership issues with Richemont created a perfect storm of uncertainty for Farfetch, causing a significant drop in its stock value. The market perceived these developments as potentially detrimental to the company's future, leading to a bearish sentiment among investors.

Farfetch Limited's shares plummeted 45.17% due to disappointing Q2 results and bleak future guidance. Despite a smaller net loss, the company's quarterly revenue dropped 1.3% to $572.1 million while its 2023 revenue projection of $2.5 billion is significantly lower than the estimated $2.8 billion.

https://www.fool.com/investing/2023/08/18/why-farfetch-limited-stock-plummeted-40-today/

Farfetch Ltd (FTCH) stock decreased 9.88% to $5.47 after the news of FTCH August 25th Options Begin Trading. The put contract at the $5.50 strike price has a current bid of 53 cents.

https://www.nasdaq.com/articles/ftch-august-25th-options-begin-trading