Why Overstock.com Shares Fell 23% Last Month
Shares of Overstock.com (NASDAQ: OSTK) fell 22.8% in October 2020, according to data from S&P Global Market Intelligence. The online home furnishings retailer and blockchain technology researcher published its third-quarter results on Oct. 29, setting off a thrilling roller-coaster ride. Overstock's share prices rose as much as 14.5% that day before reversing course and closing the day 13.6% lower instead.
The earnings report richly deserved the morning's big jump. Overstock's third-quarter sales rose 111% year over year to $732 million, while the bottom line swung from a loss to positive earnings of $0.50 per share. Your average analyst would have settled for a net loss of $0.23 per share on roughly $580 million in top-line sales.
The quick downturn in the afternoon also makes sense when you consider the stock's market-stomping gains in recent months. Overstock entered this earnings report on a 921% year-to-date gain, which set the stock up for a sharp correction if the results were anything less than utterly impressive.
Source Fool.com
