FTCH Stock: 2 Big Reasons Why Farfetch Is Stumbling Today

Today, shares of Farfetch (NYSE:FTCH) are in the investor spotlight. Indeed, shareholders in FTCH stock have saw losses as great as 20% in afternoon trading.

farfetch (FTCH) logo next to a hanger

Source: nikkimeel / Shutterstock.com

This has caused many individuals (including Mia Khalifa) to ask, “What the heck is going on with FTCH stock today?”

Well, there are a few angles to explore here today. Let’s dive into what’s driving shares of this luxury retailer lower today.

Chinese Stocks Fear at Play With FTCH Stock

Farfetch has made headlines lately via the company’s move to retail in China.

Its strategic partnership with Alibaba (NYSE:BABA) is one that has been a key catalyst for this stock in the past. Indeed, a significant percentage of the company’s 5-bagger returns over the past year can be attributed to this move.

In November, the company announced it would launch a newly formed joint venture in China. The goal? To leverage Alibaba’s augmented retail technologies to boost growth.

Digitization is everything these days. The e-commerce secular trend isn’t likely to dissipate soon. A retailer like Farfetch moving in a big way into e-commerce with Alibaba’s backing? Now that’s a winning combination. These factors, combined with a resurgence in retail investor interest in retail-focused stocks like FTCH stock, has poured gasoline on this retail name in recent months.

However, recent worries that China-U.S. relations may not be as spritely as once thought has poured cold water on any stock even remotely associated with China. The past few days have been rough for Chinese stocks, and the sympathy trade looks to be in full swing with FTCH today.

Purported Block Trade Signals Selling Pressure

Reports today that a large block of FTCH stock shares is for sale today has been another key negative catalyst for investors in FTCH stock.

While this news appears to be speculation at the moment, it’s newsworthy. Indeed, FTCH is a trending stock with tons of retail investor support. Any sort of news like this is relevant enough for investors buying and selling on speculation today.

On the date of publication, Chris MacDonald did not have (either directly or indirectly) any positions in the securities mentioned in this article.

Article printed from InvestorPlace Media, https://investorplace.com/2021/03/ftch-stock-2-big-reasons-why-farfetch-is-stumbling-today/.

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