Farfetch Stock Surges on Reported Partnership With Alibaba
Shares of Farfetch Limited (NYSE: FTCH) surged on Monday despite a lack of news on the company's website. However, The Information reports its sources say that Chinese e-commerce giant Alibaba Group Holding (NYSE: BABA) is considering a $300 million investment. This hasn't been confirmed officially but investors don't seem to mind. As of 1 p.m. EST, Farfetch stock was up a whopping 17%. Alibaba stock was unaffected by the news, up just 1%.
Farfetch is a luxury-fashion company with both e-commerce and brick-and-mortar operations. It has customers in over 190 countries, including some business in China. However, the company is reportedly also working on a joint venture with Alibaba in China. To be sure, if it wants to penetrate China further, a partnership with Alibaba makes a lot of sense. Alibaba is targeting over one billion active customers by the end of 2024, making it one of the biggest companies on the planet.
Image source: Getty Images.
Source Fool.com
