Shares of Overstock.com (NASDAQ:OSTK) shot up over 19% at the time of writing after its Q2 results surpassed revenue, EPS, and EBITDA forecasts. The online retailer reported a dip in revenue, falling 20.1% year-on-year to $422.2M, while EPS posted a narrower loss than expected, at -$0.02 against the predicted -$0.09. Despite a dip in key metrics such as active customers, orders delivered, and average order value, the focus is on the future, fueled by strategic acquisitions.
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Overstock is riding a wave of optimism following the acquisition of the Bed Bath & Beyond brand. CEO Jonathan Johnson sees this as a fresh growth chapter for the company and has been heartened by the successful launch and early performance of the Bed Bath & Beyond business in Canada. Johnson praised the brand’s overall strength. Furthermore, analyst firm D.A. Davidson, led by Tom Forte, chimed in, expressing encouragement by Overstock’s stronger-than-expected sales and profits amidst a challenging macroeconomic backdrop, particularly in the home e-commerce sector. The firm reaffirmed its ‘Buy’ rating on Overstock’s stock.
A look at the past five trading days for OSTK stock highlights the level of impact today’s news had on it. Indeed, shares jumped over 19% at the time of writing. As a result, investors are now up 15.09% during this timeframe.
