Why Farfetch, Waitr Holdings, and Nektar Therapeutics Slumped Today
Major benchmarks finished the week close to where they started, albeit with plenty of volatility along the way. Friday brought a return to nervousness about the future direction of the global economy, interest rates around the world, and trade policy. Some poor performance from individual companies created some stand-out stock moves to the downside. Farfetch (NYSE: FTCH), Waitr Holdings (NASDAQ: WTRH), and Nektar Therapeutics (NASDAQ: NKTR) were among the worst performers. Here's why they did so poorly.
Shares of Farfetch plunged 45% after the luxury fashion technology platform provider reported second-quarter results that disappointed investors. Farfetch tried to stress its growth, which included gross merchandise value gains of 44% and a 56% rise in active customer counts compared to year-ago levels. However, significantly larger losses weighed on sentiment, and some investors didn't seem to think that the just-announced $675 million acquisition of brand platform specialist New Guards Group was a smart strategic move. Farfetch has made similarly controversial purchases before, but despite executives' optimism about the company, the stock has lost half its value from its IPO less than a year ago.
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Source Fool.com