“Best Buy has simply become a show room for Amazon,” I wrote about two years ago. At that time, Best Buy stock was trading at $45. As of this writing, the stock is just above $24.
After Best Buy (BBY) reported earnings on Thursday, there has been a barrage of negative articles on Best Buy and how Amazon.comis beating Best Buy. There was a similar barrage after the earnings report in the previous quarter.
Kudos to Forbes reporter Halah Touryalai for writing,“Amazon Is Not A Threat To Best Buy, Markets Overreacting, Analyst Says. ” It takes guts to write contrary to prevailing wisdom especially when the chorus is extremely loud on the other side.
From an investment perspective, the crowd is usually late. The time to write negatively about Best Buy was two years ago. For an investor, the most relevant topics today are the impact of Apple (AAPL) on Best Buy and can Best Buy be turned around.
I already wrote about how Best Buy can turn itself around. Earlier today I advanced a new idea of closer cooperation between Best Buy and Google (GOOG).
While much is written about Amazon, not much attention has been paid to the real culprit behind the decline of Best Buy. The real culprit is Apple. Apple is sucking profits out of Best Buy. Best Buy does not talk about the subject because it needs its contract with Apple to drive traffic to its stores even though margins on Apple products are slim…Read more at Forbes.
