Amplify Online Retail ETF (IBUY)
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Amplify Online Retail ETF (IBUY)
Amplify Online Retail ETF (IBUY)
Amplify Online Retail ETF (IBUY)
Amplify Online Retail ETF (IBUY)
Farfetch shares sink but analysts are optimistic
Farfetch Ltd. shares have plummeted 9.4% in Thursday trading after the online luxury fashion company reported deeper-than-expected year-over-year losses. But analysts are optimistic that the company is on the right track. "Overall, Farfetch posted solid 1Q results and reinforced its focus on growth and market share over near-term profitability," wrote JPMorgan analysts, calling the stock slump "an overreaction." JPMorgan rates Farfetch stock overweight with a $30 price target. Wells Fargo analysts call the gross merchandise volume [GMV] growth "quite impressive." Farfetch reported a 44% GMV increase to $415 million. But investors will be focused on margins and the cost of adding new customers. "Notably, while the investments in customer acquisition have driven platform contribution margin down to the mid-30s (from 43% in 2017), we believe that as these newly-acquired customers increase spending on the platform over time (while the cost to retain them is much lower than the cost to acquire them), there is meaningful scale/leverage in the model (management reiterated a potential 60% contribution margin over the long-term)," analysts wrote.
'Clicks are winning over bricks,' says CEO behind e-commerce ETF that's beating the market
The Amplify Online Retail ETF is up nearly 30% this year, a sign that "clicks are winning over bricks" in retail, Amplify's CEO says.
Jumia shares skyrocket 32% after open
Jumia Technologies AG ADR began trading Friday morning and quickly jumped 32.6% after opening. Shares priced late Thursday at $14.50, about the midpoint of the $13-to-$16 expected range. Jumia is the top e-commerce site in Nigeria, and sells merchandise ranging from clothing to appliances across Africa. The Amplify Online Retail ETF has gained 23.6% for 2019 so far while the S&P 500 index is up 16% for the period. Market Pulse Stories are Rapid-fire, short news bursts on stocks and markets as they move. Visit MarketWatch.com for more information on this news.
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