The newswires have been rather quiet about Overstock.com
In April, Overstock reported its first-quarter earnings. Some of you may recall that while Overstock doubled its sales, its quarterly loss widened, with the company citing spending on marketing and promotion. (Some, however, argue that the company is misunderstood at this point in the game.)
Be that as it may, Overstock is following the footsteps of many Rule Breaking Internet companies by suffering some short-term pain in order to ingratiate itself with customers (and with sales doubling, that strategy seems to be working). Some may take issue with its cut-rate shipping prices -- it has launched several such aggressive promotions over recent months, advertising shipping for a buck or two -- but Amazon.com
And so, yes, there are plenty of detractors at this stage -- many people have taken issue with Byrne's reaction to naked shorting and the press. However, growth stocks that fall under the category of "Rule Breakers" are often companies that have suffered a whole lot of negativity from the press and the constraints of conventional wisdom.
Seeing how Overstock.com is a Motley Fool Rule Breakers recommendation, I took a peek around the discussion board dedicated to the stock. It's a good resource for news, information, and points of discussion about the company -- such as one poster's supposition back in April that maybe eBay's
Among other interesting recent discussion topics sparked by David Gardner himself has been Overstock's hold on the female shopper, and whether that is the company's key differentiation. Women are responsible for a large chunk of consumer sales, and it's no secret that many female shoppers can't resist the buzz you get from a great bargain. Overstock has said that two-thirds of its customers are women.
For now, many let the worries get in their way, although when David Gardner recommended Overstock in Rule Breakers, he did so with a five- to 10-year outlook in mind. While that's a long time to wait and watch and wonder, the Rule Breakers team will be following the company every step of the way.
Want to follow the plotline of Overstock.com along with us? Take us up on a 30-day trial to Motley Fool Rule Breakers --for free. We formally recommend two stocks every month, with hundreds more being thrown around on our dedicated discussion boards. Get in on the conversation today.