Shares ended Wednesday down $4.61, or 22%, at $15.97. The stock closed Monday at $24.97, prior to the statement's release.
After the close of trading on Monday, Overstock CEO Patrick Byrne issued a statement that was odd for an official corporate communique, to put it mildly.
In a press release entitled "Overstock.com CEO Comments on Deep State, Withholds Further Comment," Byrne appeared to cast himself at the center of a thriller involving Russia, the Clintons, the murder of a friend, and people referred to as "the Men in Black."
The statement referenced articles written by a Fox News contributer about Byrne, in which he claimed to have played a role in the investigation into Russian election interference in part by carrying on a relationship with convicted Russian agent Marina Butina.
Although Byrne had no further comment, many puzzled market watchers did.
In a note on Tuesday, D.A. Davidson analyst Tom Forte reiterated a Buy rating and $48 per share target on the stock. Overstock is in the midst of a pivot away from its main retail business and towards blockchain products, and may sell its original retail division. In a July letter, Byrne said trends in the retail segment are improving and that "we will sell the Retail business if it makes sense and we get a good offer for a good home."
Prior to the stock plunge this week, Overstock shares had rallied about 150% since the beginning of June on optimism around higher-margin blockchain products and signs of a turnaround in its retail business.
However, there is a possibility that Byrne's controversial remarks will have a negative impact on Overstock's material remarks, according to Forte.
"We believe CEO Patrick Byrne would step down from his current role if the recent controversy had a material negative impact on Overstock's operating results," he wrote.
For now, investors will simply have to wait and see whether Byrne's thriller has a second act.