Short pitch: Online furniture retailer – temporary COVID beneficiary pretending to be a growth business. Gained share due to competitors’ supply chain disruptions. Recent windfall expected to reverse – already failing to deliver. OSTK is a competitive laggard far behind W, getting outspent 7:1 on ads and offering inferior service to customers. B&M peers are regaining share from W/OSTK.
Valuation: Before COVID OSTK wasn’t growing and was unprofitable – worth option value only. Current investor support likely dissipates once it becomes clear that OSTK is not growing and losing market share.
Exp. gain: Not specified
Full OSTK write-up (free guest account required):