Are Investors Overreacting to Best Buy's Sales Warning?
Best Buy's (NYSE: BBY) latest earnings report hit all the notes that investors usually love to hear heading into the holiday season. Sales trends beat expectations again thanks to strong demand in both the online and in-store channels. Profitability increased despite rising supply chain costs. And the management team boosted its outlook for a third straight time this year.
But Wall Street wanted more. Following management's delivery of the report on Nov. 23, Best Buy share prices slumped immediately by more than 10% due to traders' fears that the boom times are ending for the retailer.
Even if conditions for the retailer are going to shift, however, that's not likely to derail Best Buy's ability to deliver strong returns.
Source Fool.com
