FTCH - Why Farfetch Stock Is Plummeting Again This Week
2023-12-14 15:44:10 ET
Things are going from bad to worse for Farfetch (NYSE: FTCH) this week as investors continue to fear that a lack of emergency access to financing could doom the luxury fashion e-commerce company. This week's decline follows a sharp drop in the stock after shares plummeted more than 50% on Nov. 28 when Farfetch announced that it would not release its third-quarter earnings report as previously scheduled for Nov. 29. Such a delay can signal accounting irregularities, a pending acquisition, or other problems.
At the same time, reports began circulating that founder and CEO José Neves was aiming to take the company private, but he appears to be unable to secure the needed financing. Richemont , the Cartier parent and strategic partner of Farfetch, said earlier that it has no financial obligations to Farfetch and does not expect to lend to or invest in the e-commerce platform.
This week, the stock continued to sink as the company's future remained in limbo. As of Thursday at 2:15 p.m. ET, the e-commerce stock was down 40.7%, according to data from S&P Global Market Intelligence .
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Why Farfetch Stock Is Plummeting Again This Week