What happened Shares of Farfetch (NYSE: FTCH) rose 16.8% in December, according to data provided by S&P Global Market Intelligence, on a rally that really began in November, after it was reported that Alibaba Group Holding (NYSE: BABA) was considering investing $300 million in the online luxury platform. It was subsequently confirmed the Chinese e-commerce giant would be investing in Farfetch, but would be doing so with luxury goods company Richemont (OTC: CFRUY), and that the total amount would actually be over $1.1 billion. The three companies will form a joint venture called Farfetch China. Image source: Getty Images. So what This represents a massive opportunity for Farfetch. Chinese consumers account for one-third of luxury goods sales globally, and they're expected to represent half of the market by 2025. Farfetch is not a retailer itself, but rather provides a marketplace for hundreds of luxury retailers and brands to connect with consumers. In that way, it is more like eBay, where third-party sellers go to hawk their wares, than Amazon, which sells goods, though it does also offer a platform and storefronts for retailers. FTCH data by YCharts Now what Farfetch is still a loss-generating company and through the first nine months of 2020 has recorded over $1 billion in cumulative net losses. The investments by Alibaba and Richemont, plus the joint venture, should help the luxury goods platform continue with its expansion while providing an infusion of cash to keep it moving forward. 10 stocks we like better than Farfetch LimitedWhen investing geniuses David and Tom Gardner have a stock tip, it can pay to listen. After all, the newsletter they have run for over a decade, Motley Fool Stock Advisor, has tripled the market.* David and Tom just revealed what they believe are the ten best stocks for investors to buy right now... and Farfetch Limited wasn't one of them! That's right -- they think these 10 stocks are even better buys. See the 10 stocks *Stock Advisor returns as of November 20, 2020 John Mackey, CEO of Whole Foods Market, an Amazon subsidiary, is a member of The Motley Fool's board of directors. Rich Duprey has no position in any of the stocks mentioned. The Motley Fool owns shares of and recommends Alibaba Group Holding Ltd. and Amazon. The Motley Fool recommends eBay and Farfetch Limited and recommends the following options: long January 2022 $1920 calls on Amazon and short January 2022 $1940 calls on Amazon. The Motley Fool has a disclosure policy.Source