Why Farfetch Stock Plummeted on Wednesday
The stock of luxury fashion retail platform operator (NYSE: FTCH) wasn't exactly looking pretty on Hump Day. Following an analyst's recommendation downgrade, the company's shares headed directly south to close the day nearly 10% lower in price. That decline was notably steeper than the 1.4% drop of the bellwether S 500 index.
French bank Société Générale was the institution behind the Farfetch downgrade. Its analyst Abhinav Sinha pushed his recommendation down two pegs, from buy to sell. His price target is now $1.50 per share.
It wasn't immediately apparent why he did so, but it doesn't seem coincidental that Farfetch very recently announced an important development with its latest asset buy. On Monday, the European Commission (EC) cleared the company's planned acquisition of a nearly 48% stake in online fashion retail business Yoox Net-A-Porter (YNAP) from Swiss luxury goods company Richemont.
Source Fool.com
