's (NYSE: FTCH) stock sank by 45% on Friday after the luxury e-tailer posted its second-quarter earnings report. Its revenue declined 1% year over year to $572 million, missing analysts' consensus estimate by $79 million.

Its adjusted earnings before interest, taxes, depreciation, and amortization (EBITDA) loss widened from $24 million a year ago to $31 million, but its adjusted loss of $0.21 per share still cleared the consensus forecast by $0.02 per share. Those numbers look dismal, but could Farfetch -- which now trades at a nearly 90% discount to its IPO price -- actually be a deep-value stock for daring investors? Or is it a falling knife that should be avoided at all costs?

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Source Fool.com