Overstock is going through a rocky transition, from being a money-losing online retailer to a become a blockchain and cryptocurrency company. Things got worse on Wednesday. Shares of Overstock (OSTK) plunged 15% after a SEC filing revealed that CEO Patrick Byrne sold 500,000 shares of the company in two separate transactions this week.
Overstock posted a net loss of more than $40 million back in March and also announced layoffs. And even though the company is focusing more on its Medici Ventures investing firm for blockchain technology, as well as tZero security tokens for e-commerce and trading, investors are still worried about the problems in its core retail unit.
Simply put, Overstock can't compete with Amazon (AMZN) and the red hot Wayfair (W), the online home furnishing retailer whose shares have surged 60% this year. The stock sale by Byrne clearly isn't inspiring confidence either.