Farfetch Stock: Buy the Panic-Induced Dip in FTCH

All shopping is moving online — including luxury fashion — and that’s why luxury fashion e-retailer Farfetch (NYSE:FTCH) has been one of Wall Street’s favorite stocks over the past year. During that stretch, Farfetch’s stock price has risen more than 500%. 

farfetch (FTCH) logo next to a hanger

Source: nikkimeel / Shutterstock.com

But things aren’t going so well for Farfetch stock today. 

The company reported fourth-quarter numbers Thursday, after the bell. Those numbers were good and topped estimates.

But the company’s growth momentum meaningfully slowed from the third quarter, and management is guiding for this slowdown to carry into 2021.

Investors who have been bidding up FTCH stock for over a year now, weren’t too impressed. Farfetch stock dropped more than 10%. 

What’s next? 

Some consolidation here while investors process this slowdown as well as broader interest rate headwinds. Then a return to the stock’s long-term uptrend.

So, if time is on your side, you

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Is Stitch Fix a Buy?

Stitch Fix (NASDAQ:SFIX) has reinvented online shopping, making it even easier. The company blends data science and the judgement of professional stylists to make personalized apparel recommendations for clients, helping them stay trendy and fashionable.

Since its 2017 IPO, the stock has surged 460%, easily outperforming the broad market and crushing the returns of competing retailers. Despite these incredible gains, investors haven’t missed their chance — here’s why Stitch Fix is still a buy.

What makes Stitch Fix different

The retail apparel market is highly competitive, and profit margins tend to be low. Brand popularity and fashion trends can be fleeting, often changing rapidly and without warning. This means decisions regarding new product lines and inventory involve a certain amount of guesswork. But Stitch Fix has a solution for these problems.

Unlike the vast majority of apparel retailers, Stitch Fix uses customer data to curate personalized

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Buy now, pay whenever? Lockdown lift for online shopping loans

By Nikhil Nainan

(Reuters) – Browsing online during lockdown, Jessica Friend spotted a pair of Ray-Ban sunglasses she liked, but the price tag made the 30-year-old Ohio resident think twice.

What persuaded her to click ‘buy’, Friend said, was the short-term credit offered by Afterpay, which split the $260 payment into four interest-free instalments.

Afterpay is among a handful of alternative credit firms which offer small loans, mostly to online shoppers, and make their money by charging merchants a 4%-6% commission.

These buy-now-pay-later (BNPL) firms have benefited from a shift to online shopping during the coronavirus crisis in countries including the United States, where state aid has also boosted retail sales.

“I’m more inclined to use them because they make it easier to afford to get the things I want all at once … and when I want to splurge on something,” Friend said of the loans.

Some investors are

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