It's been a painful two years for Farfetch (NYSE: FTCH) shareholders. In 2021, the luxury goods e-commerce company was a high-flying do-no-wrong stock, and many investors were trying to ride Farfetch to the moon. Today, few want anything to do with it. Farfetch is beginning to look more like a distressed asset than it is a potential value stock in the making. Shares are presently some 94% off all-time highs.  

Besides a general souring on high-growth-no-profit companies, Farfetch had a number of issues crop up in 2022 -- some of them its own making, but others due to macroeconomic pressure outside of its control. Some of those pressures are beginning to ease. Is Farfetch stock ready for a big rally in 2023? 

Besides Farfetch's stock getting slammed by the U.S. Federal Reserve's aggressive interest rate hikes in 2022 (higher rates lower the value of stocks), Farfetch's business itself was also blasted by a moderation in digital economic activity last year. In-person shopping made a big comeback, helping lots of other luxury goods companies with a more square focus on a brick-and-mortar experience. 

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Source Fool.com