Q1 2020 Overstock.com Inc Earnings Call

Shares of e-commerce company Overstock (NASDAQ: OSTK) are getting used to going up in recent weeks, and Wednesday was no exception. It's just a theory, but it's possible Overstock's upcoming digital dividend has sparked a short squeeze of the stock. In recent days, Overstock's stock has gone up a lot.

Shares of Overstock (NASDAQ: OSTK) continued their upward march on Monday, after a report showed online furniture sales surged in April. Overstock's stock traded as much as 12% higher on the news, and still traded 9% higher as of 3:30 p.m. EDT. Privately-held Blueport Commerce allows traditional furniture retailers to build an online presence.

The e-commerce company reported first-quarter results and the effect COVID-19 is having on the business.

On May 19, 2020, Overstock.com, Inc. (OSTK) paid a dividend to stockholders of record as of April 27, 2020 in the form of shares of Digital Voting Series A-1 Preferred Stock, OSTKO, which is registered with the Securities Exchange Commission under the Securities Act of 1933. “It has come to the company’s attention that shares of Series A-1 Preferred Stock are being sold on platforms other than the alternative trading system (ATS), operated by tZERO ATS, LLC,” said Overstock Chief Executive Officer Jonathan Johnson.

Once left for dead as a failed e-commerce company that made a costly and ill-advised jump into the blockchain world at the wrong time, Overstock.com (NASDAQ:OSTK) has come roaring back to life amid the novel coronavirus pandemic. From it's mid-March lows, Overstock.com stock is up a jaw-dropping 5,500%.Source: Burdun Iliya / Shutterstock.com Why the huge rally? Because the future is getting brighter for Overstock.com by the day.That is, amid Covid-19, physical stores across the globe have closed their doors. Commerce activity has migrated into the online channel. This has created huge tailwinds for Overstock.com, whose revenue growth rates have reversed course from down 19% in the fourth quarter of 2019 to up 120% in April.InvestorPlace - Stock Market News, Stock Advice & Trading TipsYou read that right. In a matter of four months, Overstock.com has gone from -20% to +120% revenue growth.Sure, you could write this off as a one-time phenomena, brought on by a once-in-a-lifetime Black Swan event in a global pandemic. But it's not. This is a seminal moment in the retail industry, which will permanently accelerate the e-commerce transition and push previously offline-heavy retail categories into the online channel for good.One of those offline-heavy retail categories is home goods. Overstock is one of the five major players in the U.S. furniture e-retail market. * 10 Key Stocks to Watch Over the Next Few Months It doesn't take a rocket scientist to connect the dots. Overstock.com is on the cusp of breakthrough growth over the next few years, the likes of which will drive OSTK materially higher from current levels. A Seminal Moment in RetailMake no mistake. We are in the midst of a seminal moment in the global retail world.The e-commerce revolution was already under way before Covid-19. Globally, e-commerce sales rose by more than 500% from 2010 to 2019, and accounted for about 14% of total retail sales last year (up from less than 2% at the start of the decade). Still, the e-commerce wave of the 2010s wasn't all-inclusive. Certain verticals were left behind, like small businesses (among whom nearly 40% didn't have an online presence prior to Covid-19) and the home furniture market (which had just 14% e-retail penetration in 2019, versus 30% for apparel and 43% for consumer electronics).Because of Covid-19, those verticals are going to play catch-up over the next few years, and spark the next big wave of the e-commerce revolution in the 2020s.That's great news for Overstock.com. The company is the fifth-largest furniture e-retailer in the U.S. So long as the company can sustain its positioning in this market, then the company's 120% revenue growth rate in April will extend into double-digit growth for the next several years. Overstock's Retail TurnaroundI have confidence that Overstock can sustain its positioning in the furniture e-retail market, because the company is in the midst of a robust turnaround which will continue to drive share stabilization.Long story short, Overstock.com has been the eyesore in a surging e-commerce market for a long time. The company's share of the U.S. furniture e-retail market has slipped from 8% in 2015, to just over 3.5% in 2019.But, last year, the company got a new CEO, and implemented a three-pronged turnaround plan built on improving the platform's search relevancy, enhancing the mobile web experience, expanding the product's content on the site, leveraging data to improve pricing strategies, optimizing logistics for shorter delivery times, and introducing free shipping on everything.In short, management has taken all the right steps to make Overstock.com a better, more value-driven and more relevant e-commerce platform.The numbers speak for themselves. Revenue growth rates have consistently trended higher every quarter since the second quarter of 2019. Gross margins have ticked up every single quarter since the second quarter of 2019, too. And contribution margin has risen at a steady pace, as well.I believe that Overstock can and will leverage its platform improvements to stabilize market share around 3.5% over the next several years. If so, then Overstock.com stock is well positioned to ride secular e-retail market tailwinds to the tune of 10%-plus revenue growth for the next few years, too. Overstock to Reach $100?The best thing about Overstock.com stock is that, despite robust growth potential over the next few years, essentially zero growth potential is priced into shares today.That's because everyone wrote off this e-retailer as "left for dead" in early 2020. But since then, everything has changed. And as the "left for dead" reality turns into a hyper-growth reality, Overstock.com stock will fly higher.My modeling suggests that Overstock will grow revenues at an approximately 10% compounded annual growth rate between now and 2030, paced by 10%-plus U.S. furniture e-retail market growth. Increased revenue scale should drive continued gross margin improvements to 25% or higher. Opex rates will drop back down to below 20%, or where they were back when Overstock was a growing company around 2015 to 2016.If all that happens, then the numbers suggest that $5 in earnings per share is doable for Overstock by 2030. Based on a 20-times forward earnings multiple -- which is about average for technology stocks -- that implies a 2029 price target of $100.Yes. You read that right. In an "everything goes right" scenario, Overstock could fly from $15 today, to $100 by the end of the decade. The Bottom Line on Overstock.com StockOverstock is a one of the market's most compelling turnaround stories at the current moment. Assuming this company can leverage recent platform improvements to sustain share in what projects to be a booming U.S. furniture e-retail market over the next few years, then Overstock.com stock could be on track to hit $100 within the decade.Luke Lango is a Markets Analyst for InvestorPlace. He has been professionally analyzing stocks for several years, previously working at various hedge funds and currently running his own investment fund in San Diego. A Caltech graduate, Luke has consistently been rated one of the world's top stock pickers by various other analysts and platforms, and has developed a reputation for leveraging his technology background to identify growth stocks that deliver outstanding returns. Luke is also the founder of Fantastic, a social discovery company backed by an LA-based internet venture firm. As of this writing, he did not hold a position in any of the aforementioned securities. More From InvestorPlace * America's 1 Stock Picker Reveals Next 1,000% Winner * 25 Stocks You Should Sell Immediately * 1 Under-the-Radar 5G Stock to Buy Now * The 1 Stock All Retirees Must Own The post Why Overstock.com Stock Is One of the Market's Best Turnaround Stories appeared first on InvestorPlace.

SALT LAKE CITY, April 30, 2020 -- Overstock.com, Inc. (NASDAQ:OSTK), a tech-driven online retailer and advancer of blockchain technology, today reported financial results for.

Overstock.com, Inc. (OSTK) announces that it has successfully completed the issuance of its Digital Voting Series A-1 Preferred Stock (“Series A-1”) (OSTKO) digital dividend on May 19, 2020, as expected. The dividend was issued in Series A-1 shares on a 1:10 basis to all Overstock shareholders as of the record date of April 27, 2020. Overstock distributed the dividend shares though its transfer agent, Computershare, to investors’ brokerage or other custodial accounts in which they hold their Overstock securities, and no action by shareholders was necessary for them to receive the dividend.

(Bloomberg) -- Overstock.com Inc.’s stock price has been on a tear during the coronavirus crisis, but behind the scenes the online retailer is locked into a pitched battle with Wall Street over its controversial plans to issue a first-of-its-kind digital dividend.The fight stems from Overstock’s demand to control where the new securities are allowed to trade, rather than letting investors buy and sell them wherever they choose. Earlier this month, the company sent a letter to a number of financial firms reminding them that it expects all trading in the dividend to take place on a venue called tZERO, which Overstock owns.The retailer’s lawyers reiterated the requirement during a conference call with brokers that industry executives say quickly devolved into threats of lawsuits, though Overstock disputes that any such warnings were made. The tensions are coming to a head just as the dividend, which will give investors one preferred share for each 10 common shares they own, is set to be issued on Tuesday. Overstock says some records for the security will be be stored on the blockchain but maintains that it is not a new virtual currency.Read More: All About Bitcoin, Blockchain and Their Crypto WorldIf Overstock’s dividend plan proves successful, the implications for U.S. markets could be significant. More companies may decide to dabble in digital assets or add restrictions to their shares, especially if they find that doing so gives them more sway over their investors. On Wall Street, brokerage firms and exchanges are loath to see the launch of any security that raises the specter of a monopoly and could cut them out of trading and listing fees.SEC ScrutinyThe question of whether a company can dictate where investors are allowed to sell their stock has attracted attention from the U.S. Securities and Exchange Commission, which has long been focused on ensuring that shareholders get the best execution for their trades at low prices. While the regulator signed-off on Overstock’s dividend following an extensive review, it’s aware of the dispute around tZERO and may weigh in, said people with knowledge of the matter.“This raises fundamental questions about the rights of shareholders,” said James Angel, an associate professor at Georgetown University’s business school who owns some Overstock shares and follows the company closely.In an emailed statement, Salt Lake City-based Overstock said that it’s perfectly legal for the company to restrict trading to its own platform, adding that it hopes market participants adhere to the mandate. “If not, like any security issuer, we will take necessary action to ensure compliance with the terms of the security,” the company said.SEC scrutiny of Overstock’s dividend isn’t new. The company has said that it received a subpoena from the regulator last October demanding documents about the security, as well as the stock trading plans of Overstock executives and directors. In a May 7 regulatory filing, the company said it is fully cooperating with the request.An SEC spokeswoman declined to comment.400% JumpOverstock’s dustup with Wall Street comes amid a turnaround for the company, which is benefiting from homebound consumers needing to shop from their couches. Its shares have jumped more than 400% since mid-March, making the company one of the U.S.’s top performers. The rally follows a 48% drop for Overstock last year and a 79% plunge in 2018.Overstock slid 11% to $15.19 in New York trading Monday, its biggest daily decline since April 22.Broker and exchange complaints about the digital dividend are wide-ranging. They say limiting trading to one venue will hurt liquidity, making it difficult and expensive for investors to sell their shares. The one brokerage doing business with tZERO, called Dinosaur Financial Group, plans to charge a 1% fee, according to an April news release. That’s a stark contrast to the free trades offered by many retail brokers. Dinosaur is run by Glenn Grossman, whose son is a tZERO executive.Overstock said it’s not unusual for professionals in the financial industry to have family ties. A spokesman for Dinosaur declined to comment.Overstock’s dividend already has a trading symbol, OSTKO. There has been some buying and selling ahead of its official issuance, but those transactions will settle after the shares are given out.Dictating VenuesGTS, an electronic trading firm that is the nation’s biggest market maker for over-the-counter securities, has traded the new dividend and was one of a number of companies that got a letter from Overstock’s lawyers on May 7. The restriction, GTS Chief Executive Officer Ari Rubenstein said, violates the principles of free and fair markets and makes it very challenging for his firm to ensure it is getting the best price for clients.“This is flatly against everything we believe in,” Rubenstein said. “America’s market system is not based on dictating the trading venue and charging exorbitant fees.”GTS got clearance on Friday from the Financial Industry Regulatory Authority, the frontline overseer for brokers, to trade the dividend. The approval deals a potential blow to Overstock.TD Ameritrade recently sent a note to its customers with Overstock shares telling them they couldn’t trade the dividend through the firm. Clients wishing to buy or sell the securities “will need to make other arrangements,” the letter said.Byrne’s ObsessionThe online merchant’s plans for the dividend have sparked controversy since they were first unveiled in mid 2019. The company has said it created the security partly to push Wall Street toward blockchain technology -- an obsession of outspoken founder Patrick Byrne. He left Overstock last year amid a scandal over his romantic involvement with alleged Russian spy Maria Butina, a conservative gun aficionado who was imprisoned after failing to register as a foreign agent.Read More: Byrne’s Lingering Legacy at Overstock Is Burning ShortsOverstock is seeking to boost tZERO’s business by restricting trading to the platform. It has said the dividend has the potential to introduce tens of thousands of new investors to the venue, which is devoted to digital tokens.Critics claim that another motivation is thwarting short sellers who Overstock has fought with for years. That’s because traders betting against the company would be obligated to deliver the digital dividend to brokers they had borrowed shares from. But the perceived difficulty of doing that has prompted many to close out their short positions instead, according to market participants. The company’s stock price soared in the weeks after it announced the dividend last year.In its statement, Overstock said that the dividend would have no impact on short selling.(Updates with closing share price in 11th paragraph)For more articles like this, please visit us at bloomberg.comSubscribe now to stay ahead with the most trusted business news source.©2020 Bloomberg L.P.

Joining me today are Jonathan Johnson, CEO of Overstock and President of Medici Ventures; Adrianne Lee, CFO of Overstock; Dave Nielsen, President of Overstock Retail; and Saum Noursalehi, CEO of tZERO. Thank you, Alexis.

Shares of Overstock (NASDAQ: OSTK) rose once again on Tuesday, after rival Wayfair (NYSE: W) reported impressive first-quarter 2020 earnings. At the close of trading, Overstock shares were up 8.5%. The following chart stretches credulity by displaying the stock performance of Wayfair and Overstock just since March 18, a mere seven weeks ago.

Michael Sonnenshein, Managing Director at Grayscale Investments, joined Yahoo Finance's Myles Udland, Dan Roberts, and Melody Hahm to discuss Bitcoin's third halving and with it means for investors.

GrainChain, a keiretsu company of Medici Ventures, Overstock.com, Inc.’s (OSTK) wholly owned blockchain subsidiary, has been honored as a finalist in the “Food” category for the Fast Company 2020 World Changing Ideas Awards. This premier award honors products, concepts, companies, policies, and designs that offer innovative solutions to the issues facing society and the planet. With an innovative suite of products providing world-changing solutions in blockchain, Internet of Things, and advanced logistics systems, GrainChain is benefitting every level of the agricultural industry.

Celebrations may be in order for Overstock.com, Inc. (NASDAQ:OSTK) shareholders, with the covering analyst delivering...

tZERO, the global leader in blockchain innovation for capital markets, announced today that broker-dealers ChoiceTrade and a multinational, publicly-traded investment bank and financial services company focused on institutional brokerage are now live and trading on the tZERO ATS. These broker-dealers join Dinosaur Financial Group, LLC as subscribers to the tZERO ATS. Customers of those broker-dealers are now able to trade Overstock’s innovative Series A-1 dividend shares, which were issued to Overstock shareholders last week. These firms and their customers are expected to have access to TZROP (tZERO's preferred equity security) and other assets that trade on the tZERO ATS in the near future. The tZERO ATS now has three active subscribers and has signed four additional agreements with progressive broker-dealers interested in trading securities.

Overstock.com, Inc. (OSTK) a tech-driven online retailer and advancer of blockchain technology, announces an event for analysts and investors to be held on June 10, 2020, from 4pm to 6pm ET. The event will include include discussion and Q&A with members of the company’s executive leadership team, and will take place via a live webcast to comply with guidance from health and government officials against in-person gatherings during the coronavirus (COVID-19) pandemic. “I am committed to improving communications with our shareholders and helping the investment community better understand who Overstock is as a company,” said Overstock CEO Jonathan Johnson.

At Overstock's annual meeting last week, CEO Jonathan Johnson said that quarter-to-date sales were up 130% year over year, with new customers up 260% during the period, as more consumers than ever were embracing online shopping. Peloton's sales -- and shares -- have surged since March. Peloton has a similar story to tell.

Shares of Overstock.com (NASDAQ:OSTK) gained 10% in pre-market trading after the company reported Q1 results.Quarterly Results Earnings per share rose 66.10% over the past year to ($0.40), which beat the estimate of ($0.63).Revenue of $351,573,000 less by 4.39% year over year, which beat the estimate of $332,300,000.Looking Ahead Earnings guidance hasn't been issued by the company for now.Overstock.com hasn't issued any revenue guidance for the time being.How To Listen To The Conference Call Date: Apr 30, 2020View more earnings on OSTKTime: 02:00 PM ETWebcast URL: https://edge.media-server.com/mmc/p/uabzxd78Recent Stock Performance Company's 52-week high was at $29.7552-week low: $2.53Price action over last quarter: Up 371.32%Company Description Overstock.com Inc is a United-States-based online retailer that provides products and services through websites. The company offers a broad range of products, including furniture and home decor, jewelry, watches, apparel and accessories, BMMG (like books, magazines, CDs), electronics, and other items. The home and garden product line accounts for a material part of its total revenue. The company operates through direct business that makes sales from the company's own inventory, and partner business that sells merchandise from manufacturers, distributors and other suppliers through the company's websites. The company generates the majority of its total revenue from partner business in terms of business format, and from the U.S. in terms of market.See more from Benzinga * Altra Industrial Motion: Q1 Earnings Insights * ConnectOne Bancorp: Q1 Earnings Insights * S&T Bancorp: Q1 Earnings Insights(C) 2020 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.

Shares of Overstock (NASDAQ: OSTK) were flying higher once again on Tuesday, after shares of its digital dividend were distributed. As of 1:45 p.m. EDT, shares of its common stock were trading an impressive 19% higher on the Nasdaq exchange. While the digital dividend is today's news specifically tied to Overstock, it's also possible the stock is moving higher as investors continue to favor e-commerce companies.

Shares of Overstock (NASDAQ: OSTK) have jumped today, up by 17% as of 2:45 p.m. EDT, after the company said sales had skyrocketed as COVID-19 drives consumers to e-commerce. At the meeting, CEO Jonathan Johnson provided investors with an update about the business's performance during the novel coronavirus outbreak. The company has shifted to a new model where 100% of employees are now working from home, and Overstock has also enjoyed new retail customer growth of 85% year to date.