Why Best Buy Stock Slumped Today
Shares of consumer electronics retailer Best Buy (NYSE: BBY) tumbled on Tuesday despite an overwhelmingly positive second-quarter report. The company beat analyst estimates on all fronts, raised its guidance, and produced comparable sales growth well beyond expectations. The prospect of higher spending as Best Buy continues to invest in e-commerce may be giving investors pause. Best Buy stock was down 11% at 11:45 a.m. EDT.
Best Buy reported second-quarter revenue of $8.94 billion, up 4.8% year over year and $280 million higher than the average analyst estimate. Comparable sales grew by 5.4%, well above the 0.8% growth Best Buy reported during the same period last year. The company pointed to strong demand for technology products, strong execution of its strategy, and effective merchandising and marketing as the key drivers of this growth. Domestic online sales also surged, growing by 31.2% year over year, up from 23.7% growth during the prior-year period.
Image source: Best Buy.
Source: Fool.com
Best Buy Co. Stock
Currently there is a rather positive sentiment for Best Buy Co. with 19 Buy predictions and 3 Sell predictions.
With a target price of 92 € there is a slightly positive potential of 4.18% for Best Buy Co. compared to the current price of 88.31 €.
