Why Overstock.com Rallied 28% at the Open Today
Shares of online retailer Overstock.com (NASDAQ: OSTK) rose dramatically at the open of trading on Jan. 26. In the first half hour or so the stock gained roughly 28%, a huge move for any company. Although this type of volatility has actually been common in recent days thanks to so-called short squeezes, there was company-specific news that likely precipitated Ovestock.com's dramatic move.
After the closing bell on Jan. 25, Overstock.com announced that it had agreed to partner with Pelion Venture Partners in the blockchain space. Although the retailer's main business is selling things via its namesake online store, it has long had a division called Medici Partners that invests in smaller ventures, notably in the blockchain space. With blockchain-based investments gaining increasing attention on Wall Street, this relatively small division has taken on increased importance among investors. That said, it would be easy to argue that the business was a distraction from the company's core retail operations. Taking on a partner makes good sense.
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Source Fool.com
