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Overstock Soars After Earnings Beat, ICE Investment in tZero

Published 02/24/2022, 12:34 AM
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By Dhirendra Tripathi

Investing.com – Stock of Overstock.com (NASDAQ:OSTK) surged 23% Wednesday after the online discount retailer beat estimates for fourth-quarter earnings.

A big boost to the stock came from Tuesday’s announcement by clearing house Intercontinental Exchange that it is making a strategic investment in tZERO, a broker-dealer in which Overstock holds majority stake. tZERO enables trading of digital securities, known as Security Token Offerings. It operates an SEC-regulated alternative trading system in the digital asset space.

Overstock recorded 2021 as second consecutive year of profitability and market share growth.

The company said last 12 months net revenue per active customer was $341, up 26%. Average order value was 12% higher at $206. Orders per active customer rose while orders placed on a mobile device touched nearly 51% of gross merchandise sales.

Total net revenue in the fourth quarter fell 9% to $613 million as sales came off a record period of elevated consumer spending.

Adjusted profit per share in the quarter was 36 cents.

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