Back to top (OSTK) Stock is Surging Today: Here's Why

Read MoreHide Full Article

On Tuesday, shares of e-commerce company (OSTK - Free Report) are popping, up about 15% in afternoon trading. The stock, having hit a new 52-week-high today of $34.60 per share, is still feeling the positive effects of a new investment from short-seller Marc Cohodes.

Last week, Bloomberg reported that Cohodes made a significant investment in, and he believes that the stock is currently undervalued. Shares of OSTK have risen around 20% since his stake was revealed, and Cohodes told Bloomberg that he began buying shares of OSTK back in May.

In particular, Cohodes feels that the company’s blockchain unit could bring the stock huge gains. Called tZERO, this subsidiary looks to utilize blockchain technology in financial markets. If blockchain sounds familiar to you, that’s because it’s the platform which the cryptocurrency bitcoin operates on; it stores a decentralized account of all bitcoin transactions, and is updated by all network users.

"If this thing takes off, the company is going to sell at a whole lot more than a $700 million market cap. The stock will go apoplectic," Cohodes said.

 “This is not a stunt, this is real,” he continued. “I think the stock is going to go to 100.” Cohodes’ valuation all depends on tZERO becoming a success, and that’s not necessarily a guarantee. While he might think that other investors are only valuing Overstock based on its retail business, e-commerce is its only current business, and one that has faced years of intense competition from (AMZN - Free Report) .

Cohodes and Overstock have quite the complicated history. Back in the mid-2000s, he was a partner at a hedge fund that shorted Overstock, beginning a war with the company’s CEO Patrick Byrne that went all the way to the courts.

OSTK is currently a #3 (Hold) on the Zacks Rank, a shares of the company have gained almost 99% year-to-date.

Looking for Stocks with Skyrocketing Upside?

Zacks has just released a Special Report on the booming investment opportunities of legal marijuana.

Ignited by new referendums and legislation, this industry is expected to blast from an already robust $6.7 billion to $20.2 billion in 2021. Early investors stand to make a killing, but you have to be ready to act and know just where to look. See the pot trades we're targeting>>

In-Depth Zacks Research for the Tickers Above

Normally $25 each - click below to receive one report FREE:, Inc. (AMZN) - free report >>, Inc. (OSTK) - free report >>

More from Zacks Stocks in the News

You May Like