- NASDAQ:OSTK retraced 2.86% on Thursday, after making a new monthly high on Wednesday.
- Overstock.com fell 17% during the month of September.
- The previous spike last Thursday was triggered from a bullish upgrade from a Wall Street analyst.
NASDAQ:OSTK has had a historical turnaround in 2020 and much of it can be attributed to the massive increase in demand for eCommerce based retail sites during the COVID-19 pandemic. After rallying more than 10% last week, shares have continued its bullish trend, which saw another surge on Wednesday, with a 8.23% increase to close at $84.65. On Thursday, profit-taking mode took the stage and OSTK price retraced some 2.86%, closing at $82.23. Shares are still up over 720% during the past 52 weeks and current trading levels are still up nearly 3000% from the lows that it dipped to in March.
Much of the surge from las Thursday was caused by Wedbush analyst Ygal Arounian, who doubled down on his outperform rating and slapped a brand new price target of $92 on the stock which would imply near 20% upside from Friday’s close. Arounian also made sure to place Overstock.com on Wedbush’s Best Ideas List, which has previously included companies such as Paypal (NASDAQ:PYPL) and Salesforce (NYSE:CRM). Needless to say, it is a list that places Overstock.com with some pretty good company in terms of stocks that have outperformed the broader markets.
OSTK stock news
-637378228467472776.png)
Analyst upgrades are always tremendous short-term stimulators, but the company still needs to maintain performance in the long-run. OSTK has established itself in the online retail space due to the increase in eCommerce demand from COVID-19, but what happens when that demand runs out? As all online-only retailers, Overstock.com is at the mercy of the continued need for purchasing goods online. A COVID-19 vaccine, or decrease in the virus’ spread, could spell a drop in reliance on sites like Overstock.com, especially if brick and mortar stores fully open back up.
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers. The author will not be held responsible for information that is found at the end of links posted on this page.
If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.
FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.
The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.
Recommended content
Editors’ Picks
EUR/USD hovers above 1.0850 amid dour mood
EUR/USD is oscillating in a tight range above 1.0850 in early Europe on Tuesday. The pair stays cautious due to risk-off sentiment and a modest US Dollar uptick, as investors weigh the ECB and Fed rate cut expectations. The focus now remains on speeches from Fed officials.
GBP/USD posts small gains above 1.2700, awaits fresh catalysts
GBP/USD holds small gains above 1.2700 in European trading on Tuesday. Investors await fresh catalysts, with several Federal Reserve speakers and BoE Governor Andrew set to speak. Tuesday's Fedspeak weighed on rate cut expectations and fuelled a fresh US Dollar advance.
Gold price loses its recovery momentum amid renewed US Dollar demand
Gold price (XAU/USD) loses traction on Tuesday after reaching a record high earlier. The lack of fresh catalysts in a quiet session in terms of top-tier economic data might limit the precious metal’s upside.
Shiba Inu price flashes buy signal, 25% rally likely Premium
Shiba Inu price has flipped bullish to the tune of the crypto market and breached key hurdles, showing signs of a potential rally. Investors looking to accumulate SHIB have a good opportunity to do so before the meme coin shoots up.
Three fundamentals for the week: UK inflation, Fed minutes and Flash PMIs stand out Premium
Sell in May and go away? That market adage seems outdated in the face of new highs for stocks and Gold. Optimism depends on the easing from central banks – and some clues are due this week.