What happened

Overstock.com (NASDAQ:OSTK) shareholders dramatically outperformed the stock market last month. The stock rose 46% in May compared to a 4.5% increase in the S&P 500, according to data provided by S&P Global Market Intelligence.

The rally erased significant losses in March to push the stock far higher for the year -- up over 200% since the start of 2020.

A delivery man drops off a group of packages at a home.

Image source: Getty Images.

So what

Overstock, which runs both a home-furnishings e-commerce site and a cryptocurrency platform, captured investors' attention on both fronts last month. Its home supplies site saw sharp demand growth thanks to a dramatic shift in consumer spending toward that category amid social distancing orders. Shareholders also applauded a significant dividend distribution through its tZERO cryptocurrency trading platform.

Now what

The stock's long-term returns will depend on management's ability to retain many of the new home furnishings customers it won over the last few months once its physical-store rivals reopen their businesses. Investors will get a better idea about that prospect, and about Overstock's latest growth trends, when the tech company holds its annual shareholder meeting on June 10.