Here’s Why Overstock.com (OSTK) Declined in Q4

Investment management company Bireme Capital recently released its fourth-quarter 2022 investor letter. A copy of the same can be downloaded here. In the fourth quarter, the fund returned 34.7% net of fees compared to a 7.6% return for the S&P 500. The strategy has compounded at 27.4% annualized, besting the market by 16% a year. In addition, you can check the top 5 holdings of the fund to know its best picks in 2022.

Bireme Capital highlighted stocks like Overstock.com, Inc. (NASDAQ:OSTK) in the Q4 2022 investor letter. Headquartered in Midvale, Utah, Overstock.com, Inc. (NASDAQ:OSTK) is an online retailer.  On February 17, 2023, Overstock.com, Inc. (NASDAQ:OSTK) stock closed at $21.84 per share. One-month return of Overstock.com, Inc. (NASDAQ:OSTK) was -1.89%, and its shares lost 45.00% of their value over the last 52 weeks. Overstock.com, Inc. (NASDAQ:OSTK) has a market capitalization of $998.957 million.

Bireme Capital made the following comment about Overstock.com, Inc. (NASDAQ:OSTK)  in its Q4 2022 investor letter:

Overstock.com, Inc. (NASDAQ:OSTK) was down 21% in Q4, as investors have finally realized that the company’s bitcoin-trading pivot was a farce and they are left with a COVID-era “winner” that faces major headwinds as the pandemic subsides. Current Street estimates predict a -28% sales decline for 2022, EBITDA margins of just 3%, and essentially zero net profit. Arguably Overstock’s largest asset is the cash on its balance sheet, rather than its marginally profitable, zero-growth namesake eCommerce site.”

Overstock.com, Inc. (NASDAQ:OSTK) is not on our list of 30 Most Popular Stocks Among Hedge Funds. As per our database, 20 hedge fund portfolios held Overstock.com, Inc. (NASDAQ:OSTK) at the end of the third quarter, which was 17 in the previous quarter.

We discussed Overstock.com, Inc. (NASDAQ:OSTK) in another article and shared list of top stocks for 2022 according to Chet Kapoor’s Tenzing Global Investors. In addition, please check out our hedge fund investor letters Q4 2022 page for more investor letters from hedge funds and other leading investors.

Suggested Articles:

Disclosure: None. This article is originally published at Insider Monkey.