Shares of online retailer Overstock.com (NASDAQ: OSTK) rallied as much as 12.5% as the trading day began Thursday. Although the stock had pulled back some of those gains by around noon EDT today, it was still up a hefty 10%. But compared with the over 1,000% gain the stock has witnessed so far in 2020, even a 10% advance seems somewhat tiny.
The big story with Overstock.com can be found in the last three letters of its name. With COVID-19 leading to the forced closure of nonessential businesses and social-distancing efforts, more and more shopping is being done online. That's been a huge boon for Overstock.com, which saw revenue increase more than 100% year over year in the second quarter. Earnings improved from a loss of $0.69 per share in the second quarter of 2019 to a profit of $0.85 in the same period of 2020. No wonder investors have been so upbeat here.
Image source: Getty Images
For further details see:
Why Overstock.com Stock Rallied as Much as 12.5% This Morning