Stifel Nicolaus cut Overstock’s rating to “sell” due to high levels of spending. The company planned to spend on a Super Bowl commercial, start a consignment business, and increase tech spending; it intended its aggressive spending in a time of economic malaise, during one of the worst recessions in years.
President and cofounder resigns from the company
Overstock released its 4Q06 report. Despite continued revenue loss and lack of profitability, the company downsized its inventory from $93 million at the end of 4Q05 to a mere $20 million. This illustrates the company’s renewed focus on profits as opposed to revenue.
Overstock filed a lawsuit against large brokers including Morgan Stanley, Goldman Sachs, Merrill Lynch, and others.
Overstock released its abysmal 3Q earnings. Investors clearly weren’t happy as the stock plummeted