Fri, Nov. 20, 7:24 AM
- Overstock.com (NASDAQ:OSTK) announces it launched Black Friday holiday sales today on its website.
- The e-commerce firm is coming off a quarter of decelerating growth. Overstock's marketing spend actually rose at a faster clip than revenue.
- Shares of OSTK are down 24% since the Q3 report was unfurled.
- Previously: Overstock.com reports Q3 results (Nov. 09 2015)
- Previously: Overstock down 17.9% post-earnings; blockchain investments weigh (Nov. 10 2015)
Tue, Nov. 10, 12:43 PM
- Overstock (NASDAQ:OSTK) has tumbled to new 52-week lows after reporting its annual sales growth slowed to 11% in Q3 from Q2's 17%, and that it saw a net loss of $2.1M ($0.08/share) vs. net income of $1.7M in Q2 and $1.6M a year ago.
- Weighing on earnings: Gross margin fell to 18.5% from 19% in both Q2 and Q3 2014, sales/marketing spend rose 18% Y/Y to $30.1M, and G&A/tech spend rose 17% to $45.8M. $3.2M was spent on Overstock's Medici Blockchain stock exchange subsidiary, and $1.3M on prime broker litigation (a trial is set for March).
- CEO Patrick Byrne notes full-year direct costs related to Medici are expected to be around $8M, and that total costs will be "significantly greater" after factoring shared overhead, services from dual-tasked employees, etc.
- Byrne does his best to talk up Overstock's blockchain investments in a shareholder letter. "Please know also that by mashing together cryptotechnologists with our developers and various friends within Wall Street (yes, I still have some) along with superb IP lawyers ... we have managed to file for five key provisional patents on fundamental processes for crypto-capital formation ... We have been meeting with a number of people at the highest levels of Wall Street who understand the enormous potential of this technology."
- Discussing Overstock's core business, Byrne states search (i.e. Google) algorithm changes weighed on Q3 marketing efficiency, as did execution issues in migrating discount coupons to earned rewards. In addition, "pronounced swings" were seen in the performance of products catering to disposable income, such as fashion goods.
- Q3 results, PR
- Two months ago: IBM, i-banks embrace the blockchain
Mon, Nov. 9, 5:40 PM
Mon, Nov. 9, 4:43 PM
Wed, Aug. 26, 6:28 PM
- Overstock's (NASDAQ:OSTK) t0 cryptofinance subsidiary is buying SpeedRoute, a firm said to handle 2.5% of U.S. equity order flow, along with related firms Pro Securities and TraderField.
- In an 8-K filing, Overstock notes it's paying $700K in stock for the aforementioned companies, but adds it's paying $11M in cash and $19.3M in stock to buy a related entity called Cirrus Technologies.
- The online retailer isn't bashful when it comes to talking up the purchase. "The acquisition of SpeedRoute and its underlying technologies positions Overstock to connect t0 trading to the entire U.S. equity market. The combination of SpeedRoute's infrastructure and critical mass connectivity with the t0 blockchain software plugged into the U.S. equity markets creates a paradigm-changing moment for capital markets."
- Libertarian CEO Patrick Byrne: "According to Karl Marx, 'The philosophers have only interpreted the world. The point, however, is to change it.' The acquisition of SpeedRoute brings to fruition the idea behind t0.com: making financial markets more fair and efficient through the application of crypto technology."
Thu, Aug. 6, 4:22 PM
Sun, Jun. 7, 6:40 PM
- Early Bitcoin (COIN, OTCQB:BTCS) backer Overstock (NASDAQ:OSTK) has circulated a proposal among hedge funds, P-E firms, and other potential investors to sell a $25M private bond using the blockchain, the distributed public ledger that underpins Bitcoin and other cryptocurencies.
- Overstock CEO Patrick Byrne asserts in the proposal he "believes that cryptotechnology can do for the capital market what the internet has done for consumers." He adds Overstock might issue a bond worth less than $25M just to make one available.
- The effort comes a month after Nasdaq OMX (NASDAQ:NDAQ) announced it plans to use the blockchain to "expand and enhance the equity management capabilities offered by its Nasdaq Private Market platform." Among other things, the Nasdaq claims using the blockchain's distributed ledger will "provide extensive integrity, audit ability, governance and transfer of ownership capabilities."
- Two months before that, Reuters reported IBM has held informal talks with central banks about launching a digital cash/payment system that relies on the blockchain to enable transactions for existing currencies, while removing the need for a bank or payment processor to clear them (and collect transaction fees along the way).
Wed, May 6, 9:36 AM
- Overstock's (OSTK +0.4%) buyback is "intended to mitigate dilution resulting from employees' restricted stock units and stock options," and lasts until the end of 2017. It's good for repurchasing 5% of shares at current levels.
- The online retailer had $124.3M in cash to finance buybacks with at the end of March.
Tue, Apr. 28, 10:52 AM
- Overstock.com (OSTK -9.6%) trades lower as investors hone in on the 20% increase in sales and marketing expenses and a 25% gain in G&A/technology costs during Q1.
- Gross profit rate during the quarter increased 10 bps to 18.9%.
- The contribution margin rate was flat Y/Y at 11.9%.
- Previously: Overstock.com misses by $0.09, beats on revenue (Apr. 27 2015)
Mon, Apr. 27, 5:40 PM
Mon, Apr. 27, 4:23 PM
Sun, Apr. 26, 5:35 PM
Tue, Mar. 3, 2:35 PM
- Overstock (NASDAQ:OSTK) states its 8-year-old case against Merrill Lynch over alleged "illegal market manipulation" will proceed to trial after California's Supreme Court declined to review a November appellate court ruling, and that relevant discovery materials related to its claims against both Merrill and Goldman Sachs will be released to the public.
- Overstock has alleged several brokers engaged in naked short selling in "a deliberate effort to manipulate Overstock.com's share prices." Back in 2010, it settled claims against certain defendants for $4.44M. While Overstock's California case against Merrill is able to proceed, it isn't able to pursue its claims against Goldman on jurisdictional grounds.
- Shares have sold off amid a broader decline in equities. Volume is fairly light - 104K shares vs. a 3-month daily average of 201K.
Mon, Feb. 23, 3:04 PM
- Today's notable tech gainers include video processor supplier Ambarella (AMBA +5.1%), online retailer Overstock (OSTK +6.5%), Web toolbar/mobile ad services firm Perion (PERI +4.3%), data center switch vendor Arista (ANET +3.2%), and cloud contact center software provider InContact (SAAS +3.9%).
- Notable decliners include supercomputer maker Cray (CRAY -7.2%), 3D printer maker ExOne (XONE -4.5%), Chinese mobile game publisher Sky-mobi (MOBI -6.6%), demand-side online ad platform Rocket Fuel (FUEL -7.9%), auto site TrueCar (TRUE -4.3%), online flash sales provider Zulily (ZU -4.2%), online health insurance agency eHealth (EHTH -9.7%), and data center services provider Datalink (DTLK -4.9%). The Nasdaq is close to breakeven.
- Arista is adding to Friday's post-earnings gains, which were aided by upbeat analyst commentary. Rocket Fuel and TrueCar are adding to Friday's post-earnings losses (I, II) - TrueCar released February sales estimate data today for a number of automakers.
- Previously covered: Cybersecurity stocks, Digital Ally, TowerJazz, 500.com, Russian tech/telecom stocks, TubeMogul, RGS Energy, Computer Sciences
Thu, Jan. 29, 10:25 AM
- After rising 13% Y/Y in Q3, Overstock's (OSTK -19.4%) sales/marketing spend rose 19% in Q4 to $37.1M, a reason EPS missed estimates in spite of a revenue beat.
- Gross margin was 18.2%, +20 bps Y/Y but -80 bps Q/Q (seasonality played a role). G&A/tech spend rose 19% (to $46.6M) vs. 18% in Q3.
- Free cash flow fell 40% Y/Y in 2014 to $39.5M, thanks largely to a 128% increase in fixed asset expenditures to $41.3M. Overstock, which recently unveiled plans for a streaming/VOD service, says it continues to "seek opportunities for growth by expanding our international sales and distribution footprint, through our crypto-initiatives, and through other means."
- Q4 results, PR
Thu, Jan. 29, 9:10 AM
Overstock.com Inc is an online retailer offering closeout and discount brand and non-brand name merchandise, including bed-and-bath goods, home dcor, kitchenware, watches, jewelry, electronics and computers, apparel, and designer accessories.
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