Farfetch
Thesis
Farfetch is undervalued due to its strong economic moats, the market's overreaction to Amazon's entry into luxury goods, and its significant growth potential. The target price is set at $40, representing a 48% upside over three years.
Did it work?
The long thesis projected a $40 target (48% upside) over three years, but 71 months later the stock has declined 100%, meaning shareholders were completely wiped out (Farfetch collapsed and was rescued in a distressed sale in early 2024). Far from playing out, the thesis was decisively invalidated: the claimed economic moats and growth potential did not protect the equity, and the market's concerns proved justified. With the full stated horizon long elapsed and a total loss of capital, this is an unambiguous failure.