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Will Overstock focus more on its Blockchain investments?

There is little doubt that Overstock has had a fabulous 2017 to date. As of 10th November 2017, the American internet retailer has seen its stock price rise almost 200% compared to the start of the year. This is pretty special however you look at it, but especially since it actually reported pre-tax losses of $6.5 million for Quarter 3 of the year.

So why does the market view Overstock so optimistically when it has recently reported figures like these?

Blockchain a big boost to Overstock

The key factor behind the market’s rosy view on the company lies in the investments made by Overstock in the cryptocurrency sector, specifically Blockchain technology. It would seem the market is predicting these investments will pay-off in the long-term, hence why the stock price for the company remains so high. Overstock have also suggested they may have plans around ICOs which have excited the market.

Should the company focus on Blockchain more now?

It must be remembered that Overstock is primarily a home goods and clothes retailer at heart. The current market sentiment seems to be mainly in its Blockchain endeavours though and its reported interest in ICOs. This has led many to believe that Blockchain is the way forward for the company and may set out their route for continued success. This is especially true as the whole cryptocurrency market itself seems set to see continued growth.

Only time will tell

Of course, at this moment in time, Overstock has not confirmed any plans to sell off its core business and move to being a solely Blockchain-based company. The company’s senior management will have to make sure whatever decision they come to around the area is based on sound business facts and not just because cryptocurrency is big news right now.

One thing to remember is that plenty of companies started out life as one thing before deciding to move with the times into a new, successful area. Amazon and Nokia are just two of the massive names to do this in history that spring to mind.

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Frances is a writer for Crypto Daily, and she is responsible for bringing you the latest news on everything that is related to the Crypto world. She has a keen interest in Cryptocurrencies, and has many years of experience writing in all different roles. She is incredibly passionate about writing, and this combined with her interest into the finance, and virtual currency sector means that you are kept up to date with all of the latest news and information regarding all cryptocurrencies.