Overstock (NASDAQ:OSTK) has recently seen its shares rocket from all-time lows to all-time highs. Earlier today, Overstock hit a new 52 week high of over $98/share. Overstock started the year in the single digits at $7, dipping to just over two bucks a share as COVID sank the overall economy.
But since the beginning of 2020, several vital catalysts have impacted the e-commerce company. First, while COVID has crushed brick and mortar retail, online retailers have thrived following an initial pause. Whether it is Amazon or Overstock – everyone is shopping online and much of this COVID driven traction is here to stay.
The second catalyst is new management at Overstock that has refocused on Overstock’s bread and butter business of e-commerce. This renewed effort has paid off as the business has grown in the highly competitive sector of online shopping. During the most recent earnings call, one individual posing a question to management called the prior regime a “s**t show” alluding to a lack of focus on the firm’s legacy business as innovative blockchain-based services hoovered up much of management’s time.
But by boosting the e-commerce side of Overstock, the company has ensured that initiatives like Medici Ventures and tZERO can continue to iterate, invest, and expand. At one point, the chatter was quite dire regarding the future of Overstock as well as the newer digital services. The fact that Overstock has regained its ability to compete online is very good news for the future of the company’s masthead blockchain venture tZERO.
Earlier today, CI received a note from the company indicating the tZERO ATS recorded its strongest month ever in July. The digital asset trading platform reports transacting over 816,000 digital securities, nearly doubling the previous record of 423,000 set in May 2020.
Simultaneously, dollar volume, impacted dramatically by the share price of OSTKO (Overstock), came in at almost $7.6 million – more than 3 times the increase compared to June 2020.
For tZero to succeed it will need a very long runway and a good amount of patience. The transition from analog securities to digital securities is at the very beginning of its odyssey. Overstock’s success helps to propel tZero’s success. Something Overstock’s management seems to finally understand.
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