Throughout much of 2023, naysayers argued that the rebound in stocks from October 2022 was just a bear-market rally. That argument hasn't held up too well, given how far stocks have moved higher in the ensuing nine months. However, some of those bearish sentiments now seem to be percolating into the collective market consciousness, as major market benchmarks looked poised for another down day on Friday morning.

One high-profile stock moving lower on Friday was XPeng (XPEV 10.73%), which released its latest quarterly financial results. Yet the drop in XPeng's stock paled in comparison to what shareholders of Farfetch (FTCH -2.22%) had to deal with, as the fashion portal provider also disappointed its investors with a downbeat quarterly report. You'll find all the details below.

XPeng downshifts

Shares of XPeng were down about 7% in premarket trading on Friday morning. The Chinese electric vehicle manufacturer reported second-quarter financial results that showed how much competition there is in the industry right now and that failed to inspire investors to see a clear road to a prosperous future.

XPeng's quarterly numbers didn't paint a pretty picture. Total revenue dropped 32% year over year, although it was up about 25% from the first quarter of 2023. Gross margin was negative for the period, meaning that XPeng was spending more just on the direct costs of manufacturing its vehicles than it collected from customers in gross proceeds. Losses also widened from previous periods, with XPeng posting an adjusted loss of $0.21 per share.

XPeng executives largely focused on their successful efforts to boost vehicle delivery counts. In addition, the launch of the XPeng G6 has gone quite well, although its June release meant that most of the impact of the new EV model didn't make it into the second-quarter results. XPeng also sees a pipeline of further models that it hopes will accelerate its longer-term sales growth.

It's tough for investors to have patience with XPeng's strategy, though. Because of the new emphasis on profitability across the stock market, many investors aren't willing to wait years for a company like XPeng to become consistently profitable. That could put further pressure on the stock if market conditions remain like they've been during much of 2023.

Farfetch falls sharply on fashion fears

Farfetch saw much bigger declines in its stock price than XPeng, with shares down 40% in premarket trading Friday morning. The luxury fashion platform provider reported second-quarter financial results that reflected difficult economic conditions across its addressable market.

Farfetch's numbers revealed a business that essentially took a pause. Revenue moved lower by 1% year over year to $572 million, as gross merchandise value across the platform was up just 1% from year-ago levels. Gross margin plunged nearly 4 percentage points to 42.5%, and that led to a sizable loss. Adjusted losses of $0.21 per share were flat from year-earlier levels.

Farfetch's digital platform actually held up reasonably well. Revenue climbed nearly 10% in the segment, and active customer counts were higher than they were 12 months ago. However, average spending per order was down. Meanwhile, Farfetch's brand platform did far worse, with segment revenue plunging more than 40%.

Investors also reacted negatively to critical comments from analysts, some of whom downgraded their ratings on Farfetch stock. With so much uncertainty in the macroeconomic outlook, it's far from clear when Farfetch can expect to see conditions improve and potentially return to a more stable growth trajectory.