Best Buy's Grim Future
Aug 24th 2012 1:31PM
Updated Aug 24th 2012 1:36PM
The following video is part of our "Motley Fool Conversations" series, in which analyst John Reeves and advisor David Meier discuss topics across the investing world.
John and David have had a negative outlook on Best Buy for some time now. With a difficult future ahead, the company probably should go private. Best Buy continues to struggle. Same-store sales weren't as bad last quarter, but they were still negative. Competitor hh gregg is seeing similar struggles. The macroeconomic environment may be slow right now, but we shouldn't discount the impact of Amazon.com on the industry, nor the progress made by niche retailers like GameStop over time. And let's not forget how iTunes and Netflix changed the way we consume entertainment media, which used to be big sellers at Best Buy. The company is shrinking its square footage, cutting costs, and is bringing in a new CEO, but John and David don't think investors should bank on a turnaround.
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The article Best Buy's Grim Future originally appeared on Fool.com.The Motley Fool has no positions in the stocks mentioned above. David Meier has no positions in the stocks mentioned above. John Reeves has no positions in the stocks mentioned above. The Motley Fool owns shares of Amazon.com, Best Buy, GameStop, and Netflix. Motley Fool newsletter services recommend Amazon.com, hhgregg, and Netflix. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.
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