Farfetch stock price is up over 60% in November. Here’s why

Farfetch (NYSE: FTCH) stock price has exploded this month to print record highs above the $50 mark. This way, shares are now up over 300% since the beginning of the year. 

Fundamental analysis: Sales soar

Farfetch, an online luxury fashion platform, posted a loss of $537 million to beat the market’s expectations for the third quarter. The company recorded $798 million in gross merchandise volume (GMV), which is by far the highest number reached in a single quarter so far. 

A few days ago, Farfetch agreed a new partnership with Alibaba and Richemont to create a “Luxury New Retail” that will enable the company to have broader access to the Chinese market.

Following strong results recorded in the quarter and a new partnership, Credit Suisse’s Stephen Juefore hiked the price objective on Farfetch to $43 per share (up from $35).

Technical analysis: Shares up 300%

Farfetch stock price gained 5.69% on Friday to close at $45.67 despite reaching levels above the $50 mark on stronger-than-expected quarterly earnings. This way, shares of Farfetch closed the week 7.5% in the green just a week after exploding 51% last week.

The investing community witnessed a classic pullback fueled by profit-taking. Investors were glad to book some of their profits as FTCH is up more than 300% since the beginning of this year. Any deeper pullback to the $33 zone is likely to be seen as an opportunity to get on the long side. Learn how to choose winning stocks here.

Summary

Farfetch agreed a new partnership with Richemont and Alibaba to speed up the digitization of the luxury sector in China. A new platform coupled with a great performance in the last quarter propelled the stock to record highs this week.