Best Buy Stock Price..... What Gives?

[AaronP]

Anyone have any ideas why Best Buy's stock is under $20 bucks now? I know the general economy/retail slump has a bit to do with it, but my local Best Buy is still jam packed with cars all the time, and their earnings seem decent, and the PE is only 11.

Anyone have any thoughs?

 

[microAmp]

If their revenue and/or profits seem flat that might give reason for it being low.

I have stocks in some companies that are actually making a profit but flat so they aren't going anywhere.

 

[bacillus]

the drop is due to the market as a whole being in a bearish mood!

 

[yllus]

Yeah, it dropped from about $25 to hovering near $20 all of this week. Revenue was down something like 30 percent this quarter in a generally bearish market. Things will definitely pick up again as the Christmas shopping season begins.

 

[kherman]

Originally posted by: yllus
Yeah, it dropped from about $25 to hovering near $20 all of this week. Revenue was down something like 30 percent this quarter in a generally bearish market. Things will definitely pick up again as the Christmas shopping season begins.

linkified

 

[FoBoT]

consumer confidence is low, i think the chances for a crappy christmas season at the retailers is sorta high, or at least inverstors might think so

 

[ElFenix]

Originally posted by: FoBoT
consumer confidence is low, i think the chances for a crappy christmas season at the retailers is sorta high, or at least inverstors think so

and everyone watches the investors since more than half of americans have something in the stock market, so it will be a crappy xmas season.

 

[T2T III]

Due to the slowness, expect some great prices on computers to start appearing with increased sales starting late this month through December. However, if people are holding off their purchase for a bargain in January, they might be surprised. Apparently, there's not a lot of inventory in the market right now which will mean that the supply could dry up a bit if sales are good during late-October through December.

Lots of companies are in this same predicament. The overall mood is sour - so even companies that are doing half-way good are still affected by the slump.

 

[BlamoHammer]

Since the company has constantly been growing there is always an optimistic estimate for quarterly earnings. A few months ago the company missed the estimate for the first time ever. It's not to be taken that Best Buy is in trouble, just not growing as fast as they once did. New stores are still opening all over the place and they are being done so with cash, no borrowing from anyone. Consumer confidence is low (as was stated by those above) and this of course affects the nations largest electronics retailer.

 

[Mday]

compared to other companies (retailers), bb is doing pretty good.

 

[Vette73]

Heres the reason