Farfetch shares lost more than -10% Thursday, after the online luxury fashion retailer reported wider-than-expected loss for the first-quarter.
The company incurred an adjusted loss of -22 cents per share, worse than analysts’ anticipated -14 cents per share loss.
However, revenue of $174.1 million came in higher than analysts’ estimates of $171.1 million. The figure also marked a +39% climb year-over-year .
CEO Jose Neves mentioned launch of the Augmented Retail pilot in Chanel's new Paris boutique, and the entry of Farfetch on JD.com's platform as significant developments for the company in recent times.
Despite the lower-than-expected earnings performance of Farfetch in the latest quarter reported, several investment bank analysts did not budge from their outlook. JP Morgan maintained its overweight rating and $30 price target on the stock, while analysts at Wells Fargo also reaffirmed their outperform rating and $32 price target.
Moving lower for three straight days is viewed as a bearish sign. Keep an eye on this stock for future declines. Considering data from situations where FTCH declined for three days, in of 294 cases, the price declined further within the following month. The odds of a continued downward trend are .
The 10-day RSI Indicator for FTCH moved out of overbought territory on May 24, 2023. This could be a bearish sign for the stock. Traders may want to consider selling the stock or buying put options. Tickeron's A.I.dvisor looked at 25 similar instances where the indicator moved out of overbought territory. In of the 25 cases, the stock moved lower in the following days. This puts the odds of a move lower at .
The Stochastic Oscillator may be shifting from an upward trend to a downward trend. In of 57 cases where FTCH's Stochastic Oscillator exited the overbought zone, the price fell further within the following month. The odds of a continued downward trend are .
FTCH broke above its upper Bollinger Band on May 18, 2023. This could be a sign that the stock is set to drop as the stock moves back below the upper band and toward the middle band. You may want to consider selling the stock or exploring put options.
The Aroon Indicator for FTCH entered a downward trend on May 11, 2023. This could indicate a strong downward move is ahead for the stock. Traders may want to consider selling the stock or buying put options.
The Momentum Indicator moved above the 0 level on May 15, 2023. You may want to consider a long position or call options on FTCH as a result. In of 68 past instances where the momentum indicator moved above 0, the stock continued to climb. The odds of a continued upward trend are .
The Moving Average Convergence Divergence (MACD) for FTCH just turned positive on May 05, 2023. Looking at past instances where FTCH's MACD turned positive, the stock continued to rise in of 42 cases over the following month. The odds of a continued upward trend are .
FTCH moved above its 50-day moving average on May 19, 2023 date and that indicates a change from a downward trend to an upward trend.
The 10-day moving average for FTCH crossed bullishly above the 50-day moving average on May 23, 2023. This indicates that the trend has shifted higher and could be considered a buy signal. In of 14 past instances when the 10-day crossed above the 50-day, the stock continued to move higher over the following month. The odds of a continued upward trend are .
Following a +2 3-day Advance, the price is estimated to grow further. Considering data from situations where FTCH advanced for three days, in of 261 cases, the price rose further within the following month. The odds of a continued upward trend are .
The Tickeron Valuation Rating of (best 1 - 100 worst) indicates that the company is fair valued in the industry. This rating compares market capitalization estimated by our proprietary formula with the current market capitalization. This rating is based on the following metrics, as compared to industry averages: P/B Ratio (2.872) is normal, around the industry mean (18.928). P/E Ratio (0.000) is within average values for comparable stocks, (73.881). Projected Growth (PEG Ratio) (0.000) is also within normal values, averaging (2.626). Dividend Yield (0.000) settles around the average of (0.038) among similar stocks. P/S Ratio (0.896) is also within normal values, averaging (8.439).
The Tickeron Price Growth Rating for this company is (best 1 - 100 worst), indicating steady price growth. FTCH’s price grows at a higher rate over the last 12 months as compared to S&P 500 index constituents.
The Tickeron SMR rating for this company is (best 1 - 100 worst), indicating weak sales and an unprofitable business model. SMR (Sales, Margin, Return on Equity) rating is based on comparative analysis of weighted Sales, Income Margin and Return on Equity values compared against S&P 500 index constituents. The weighted SMR value is a proprietary formula developed by Tickeron and represents an overall profitability measure for a stock.
The Tickeron PE Growth Rating for this company is (best 1 - 100 worst), pointing to worse than average earnings growth. The PE Growth rating is based on a comparative analysis of stock PE ratio increase over the last 12 months compared against S&P 500 index constituents.
The Tickeron Profit vs. Risk Rating rating for this company is (best 1 - 100 worst), indicating that the returns do not compensate for the risks. FTCH’s unstable profits reported over time resulted in significant Drawdowns within these last five years. A stable profit reduces stock drawdown and volatility. The average Profit vs. Risk Rating rating for the industry is 95, placing this stock worse than average.
The average fundamental analysis ratings, where 1 is best and 100 is worst, are as follows