Overstock should go back to considering selling its e-commerce business, says analyst Tom Forte.

Is it time for Overstock to consider its options?

Last week, Overstock.com Inc. (OSTK) was hit by a double whammy. After the Supreme Court ruled that online retailers have to collect state sales tax, shares of Overstock dropped 7.2% as the market closed on Thursday. On top of the Supreme Court ruling, "Bitcoin was under pressure and pulled back," said Tom Forte, an analyst for DA Davidson & Co.

In December, Patrick Byrne, CEO of Overstock, told TheStreet he was considering selling or reorganizing the e-commerce business. 

Forte said that, "ultimately a sale will be the first catalyst." He also said that he believes that this opportunity to sell is a "get out of jail free card" for Overstock. 

"When you consider the most natural buyers, those companies are already collecting sales tax. Much like when Walmart acquired Jet.com, they understand that they have to collect sales tax in all states. I believe that they have a get-out-of-jail-free card," said Forte.

Overstock didn't respond to TheStreet's request for comment. 

When asked about the drop because of Bitcoin, Forte responded, "If you look at stock runs both up and down since last year, it's highly correlated to bitcoin. This, I think, is a disconnect. Overstock is one of the small retailers to accept bitcoin as payment, but it's historically only been less than 1% in sales."

However, Overstock is "moving forward" with it's initial coin offering (ICO) for its cryptocurrency, tZERO, according to Forte. 

In afternoon trading, Overstock was down nearly 8%.