NEW YORK, NY / ACCESSWIRE / July 2, 2018 / Nike shares leaped to a brand new high after posting better than expected results for the fourth quarter. The company also announced a $15 billion share buyback program. Shares of Overstock were also advancing after its blockchain subsidiary tZero signed a letter of intent with GSR Capital for a Security Token investment of $160 million.
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NIKE, Inc. shares closed up 11.13% on about 31.4 million shares traded on Friday. The athletic apparel and shoe company hit an all-time high after it announced earnings that were better than expected. The results were so good that several analysts raised their price target on the stock right after. Sales growth in the company's largest market, North America, returned to 3% after posting three straight declines. Sales in Greater China, Nike's key growth focus, grew 25% excluding currency impact. Sales in Europe were also up by 10%. Digital sales were up 41% this quarter. The world's largest shoe maker reported earnings that rose 15% to 69 cents a share and that revenue grew 13% to $9.79 billion. Analysts were expecting earnings per share of 64 cents and sales of $9.39 billion. Susquehanna raised their price target by $14 to $78 while Barclays raised their target from $80 to $85. Barclays analyst Matthew McClintock stated, "Nike delivered the closest thing to a complete game for a public company." He also said, "The Nike story is officially back at this point and investors will no longer have an opportunity to 'wait for a better entry point' as all signs point to an acceleration." Nike also approved a $15 billion share buy-back program over a period of 4 years starting fiscal 2019. Shares of Nike have gained almost 27% this year so far.
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Overstock.com, Inc. shares closed up 12.54% this past Friday on around 3.6 million shares traded. Shares exploded after traders learned that Overstock's blockchain subsidiary tZero had signed a deal with a venture capital firm called GSR Capital. According to the announcement from both companies, the Hong Kong VC firm is buying $160 million worth of tZero security tokens which run on the Ethereum blockchain as ERC-20 token. As they do not constitute company equity, GSR Capital will have no voting right. The press release read that the companies have "entered into executed SAFEs in excess of $168 million for Security Tokens, of which over $95 million has been already funded." Overstock CEO Patrick Byrne remarked, "Years ago we saw the world-shaking potential of blockchain, and since then we have been methodical in building tZERO into a company that will bring great efficiency and transparency to capital markets domestically and abroad." Byrne is also the Executive Chairman of tZero. He also added, "I truly believe what we are doing is historic and, while there is still much to be done, our success in this STO [security token offering] has given us the resources we need to see it through."
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