Overstock, the leading online retailer known for its foray into the digital currency technology sector with T0.com saw its shares go up by over 19%. The good news follows the company’s Q3 earning report, which has been disappointing at best. The earnings report, published on Thursday shows that the company has lost over $3.1 million in the last three months.
According to reports, Overstock’s revenues in the third quarter has been around $441.6 million, but the losses were due to last minute fall in its share value. Overstock’s shares reached its lowest point in the past one year by losing 20%. At the same time, the company registered a growth of 13% during Q3.
The market seems to have corrected itself, as the company recovered most of the losses — it gained almost 95% of the value in a day’s trading. While the initial drop was attributed to market conditions and dwindling investor confidence, the recovery may be influenced by the company’s revenue potential and its strategic investment into the future, which was around $ 3 million without immediate returns.
Overstock’s founder and CEO Patrick M Byrne was quoted in the company’s Q3 earning release saying, “The retail business is re-accelerating and is fundamentally sound. It had a pre-tax loss of ($0.9) million in Q3, which included $3.9 millions of impairment and bad debt expense related to an international minority investment. Our Medici business cost us $3.0 million pre-tax this quarter, but that was well worth it as we achieve real progress in our blockchain and fintech initiatives that others have yet to demonstrate.”
It is quite possible that the statement was instrumental in restoring faith as it shows that the company’s retail business is still sound and a majority of losses were from its investment into next-generation blockchain technology platforms.
The announcement follows the company’s latest success of its subsidiary, T0.com. Recently, the blockchain trading platform announced successful trials of its online trading platform after it managed to successfully record the evidence of compliance with US Securities Exchange Commission’s SHO. As Overstock continues to develop the platform, it has decided not to wait for other companies to come on board. Instead, it will start selling its own shares on T0.com while welcoming others to join.
Ref: Overstock | Yahoo Finance | Chart: Yahoo Finance |Image: NewsBTC