Overstock.com Inc (OSTK Stock) sees some profit-taking after recent bullish run

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

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.