Why Overstock.com Stock Jumped Another 10% Today
Shares of Overstock.com (NASDAQ: OSTK) were higher by around 10% at 2:30 p.m. EDT on April 30. That follows a notable gain on April 29, driven largely by earnings. While some of today's price advance probably represents a continuation from the positive quarterly update, there's another factor that might be more important.
Investors looking at the price action in Overstock.com today shouldn't discount the good earnings news yesterday. After all, the company's first-quarter 2021 revenue increased an incredible 94% year over year. Adjusted earnings improved by some $0.90 per share, going from red ink to $0.54 per share of black ink. That's a pretty good showing, but there's another wrinkle here that long-term investors need to understand.
Image source: Getty Images.
Source Fool.com
