Shares of e-commerce retailer and blockchain technology company Overstock.com (NASDAQ: OSTK) fell on Monday, declining as much as 13.5%. As of 11:00 a.m., the stock was down 8.7%.
The stock's Monday sell-off follows the company's fourth-quarter results. Revenue surprisingly declined compared to the year-ago quarter, and Overstock lost $42.3 million during the period.
Image source: Getty Images.
Overstock reported fourth-quarter revenue of $452.5 million, down from $456.3 million in the year-ago quarter. Analysts, on average, were expecting revenue to increase approximately 4% year over year. The decline in revenue was primarily due to a 4% year-over-year decrease in orders as the company spent 13% less on sales and marketing expenses. But higher promotional activities and sales also contributed to lower revenue.
The company's bottom line came in at a loss of $42.3 million -- an improvement from a loss of $95.7 million in the fourth quarter of 2017. Overstock's loss on a per-share basis was $1.39, narrower than a loss of $3.72 in the year-ago quarter.
Overstock acknowledged the company's struggle to become profitable during the year, with CEO Patrick Byrne noting, "Our retail arm lost money last year because I gunned things in an attempt to create a conventional high-growth/money losing e-commerce business, but the losses were nauseating and we reverted back to the philosophy of profitability on which we built Overstock."
But Byrne predicts Overstock will generate $10 million or more in positive operating cash flow in 2019 as the company prioritizes profitability.
More From The Motley Fool
- 10 Best Stocks to Buy Today
- 3 Stocks That Are Absurdly Cheap Right Now
- 5 Warren Buffett Principles to Remember in a Volatile Stock Market
- The $16,728 Social Security Bonus You Cannot Afford to Miss
- The Must-Read Trump Quote on Social Security
- 10 Reasons Why I'm Selling All of My Apple Stock