Not So Deep Dive: Farfetch Revisited
Today we revisited Farfetch stock, which is going through a brutal drawdown right now.
Here are some questions I was wondering about, or would need to have answered before considering an investment:
- How much of the long-term thesis is tied to China? Is that luxury market predictable?
- Can I understand the strange balance sheet items? (there are a lot of them)
- Are they going after too many initiatives at once?
- What sort of margins will they have at maturity?
Anyone with thoughts on the business, please let me know, would love to learn more about it
What's pretty clear is that Jose Neves is not going to make a lot of money because most of his compensation was tied to stock price reaching certain levels at a predetermined date which will likely not happen