Why Overstock.com Is Doomed In The Short Term

Overstock.com (NASDAQ:OSTK) has been trending lower for months now ever since its January 2018 peak at $85. Despite having already fallen over 86% to $11.19, there is still time to be short OSTK, as it will soon test long-term support at $9.00.

I like Overstock. But I would still short it, like many other investors over the past year.

Just 12 months ago, it seemed as though Overstock had the potential to turn itself around. tZERO was going to be revolutionary, like discovering cold fusion. OSTK was even planning on divesting its entire retail business and going full blockchain. This was going to change the course of history by allowing securities to be tokenized.

Today, however, things have changed.

Crypto Couldn’t Save OSTK

tZERO has been a total disaster. The blockchain-based utopian visions of Byrne have evaporated.

In 2018, Byrne was quoted by The Wall Street Journal as making the following statement:

“I don’t care whether tZERO is losing $2 million a month…we think we’ve got cold fusion on the blockchain side.”

I’m not sure who the “we” is that Byrne was referring to, but apparently, “they” overestimated things. For the most part, no one is adopting tZERO.

[Want more? Read the full article on Seeking Alpha 👉 https://seekingalpha.com/article/4293657-overstock-com-doomed-short-term ]