Farfetch shares tumble to half their listing price
Aug 12, 2019
Farfetch shares suffered a double dip on Friday after the company reported widening losses and its acquisition of Italian streetwear group New Guards left investors with more questions than answers.
Farfetch stock value dropped to less than half their listing price, as "concerns over Farfetch’s earnings outlook came as analysts cautioned that its purchase of New Guards could keep it in the red for longer than had been expected," reported the Financial Times.
In order for the company to complete the purchase and operate with financial flexibility and liquidity, the company signed with JP Morgan Securities to secure a 300 million euro loan facility for up to 12 months, said Retail Insight.
Farfetch has since its shares rollercoaster, which at the time of going public last year were 20 US dollars, then rocketed up 50 percent on the first day of trading, and dropped to 9.94 US dollars on Friday.