24/7 Insights
- Amazon has threatened Best Buy Co. Inc. (NYSE: BBY) revenues for over a decade.
Best Buy Co. Inc. (NYSE: BBY) shares recently jumped significantly. In the most recently reported earnings, per-share earnings topped analyst expectations at $1.20. However, revenue fell short of expectations, coming in at $8.85 billion against the consensus estimate of $8.97 billion. It is hard to celebrate the results of a company with revenue challenges. Best Buy is a good dividend stock.
After the recent jump, Best Buy shares are up 14% in the past year, compared to the S&P 500 at 25%. The stock of nemesis Amazon.com Inc. (NASDAQ: AMZN) is up 45% during the same period.
Amazon has threatened Best Buy’s revenues for over a decade. Millions of shoppers found it easier to purchase consumer electronics online. Even with Bestbuy.com’s success, its breadth is far short of Amazon’s.
Amazon sells much more than electronics, and its reach is massive. Its North American revenue in the most recent quarter was $86.34 billion, compared with $76.88 in the year-ago period.
Among Best Buy’s primary disadvantages is that it has 1,051 stores in the United States. This carries rent, personnel, and, more recently, the theft that has troubled all major retailers.
Best Buy is not alone. For years, Amazon has been viewed as taking sales from every major retailer in the country. This has injured several of these stock prices, and Best Buy is no exception.
Millennials’ Favorite Consumer Electronics Brands: Ranked
∴
Want to Retire Early? Start Here (Sponsor)
Want retirement to come a few years earlier than you’d planned? Or are you ready to retire now, but want an extra set of eyes on your finances?
Now you can speak with up to 3 financial experts in your area for FREE. By simply clicking here you can begin to match with financial professionals who can help you build your plan to retire early. And the best part? The first conversation with them is free.
Click here to match with up to 3 financial pros who would be excited to help you make financial decisions.
Have questions about retirement or personal finance? Email us at [email protected]!
By emailing your questions to 24/7 Wall St., you agree to have them published anonymously on a673b.bigscoots-temp.com.
By submitting your story, you understand and agree that we may use your story, or versions of it, in all media and platforms, including via third parties.
Thank you for reading! Have some feedback for us?
Contact the 24/7 Wall St. editorial team.
Latest from 24/7
