BBY posts
FeedPosted Nov 4th 2009 8:40AM by Tom Johansmeyer (RSS feed)
Filed under: Apple Inc (AAPL), Amazon.com (AMZN), Netflix, Inc. (NFLX), Blockbuster Inc 'A' (BBI), Best Buy (BBY), Media World, Technology
Best Buy (NYSE: BBY) may be the world's largest electronics retailer, but it realizes that it faces a huge threat to a hefty chunk of its business. Apple (NASDAQ: AAPL) is moving plenty of movies and other soon-to-be former DVD fare through iTunes, staking a claim on a business that once belonged to Best Buy. The big box store is getting ready to fight back (finally?).
Using technology it's licensing from Sonic Solutions (NASDAQ: SNIC), Best Buy is opening an online store for movies and television shows. Best Buy CEO Brian Dunn says this move will expand the company's presence in services and will bolster company loyalty. That's the press release version, of course. The reality is that Best Buy needed to do something to protect this portion of its revenue and probably should have made the move several years ago.
Continue reading Best Buy follows Amazon into the clouds
Posted Nov 3rd 2009 11:40AM by Eric Buscemi (RSS feed)
Filed under: Analyst reports, Analyst upgrades and downgrades, Best Buy (BBY), Analyst initiations
Analyst upgrades:
- FBR Capital upgraded Overseas Shipholding (NYSE: OSG) to Outperform from Market Perform following the Q3 results as it believes the worst quarters are behind the company. The firm raised its target on shares to $48 from $35.
- Deutsche Bank upgraded Corporate Executive Board (NASDAQ: EXBD) to Hold from Sell following the Q3 results to reflect the company's lower costs. The firm raised its target on shares to $22 from $18.
- RBC Capital upgraded Enbridge (NYSE: EEQ) to Sector Perform from Underperform after the company's partnership produced significantly higher than expected DCF. In addition, the firm raised its price target by $5 per unit to $46 to reflect an improved distribution schedule and more favorable debt leverage.
- Royal Dutch Shell (NYSE: RDS.A) was upgraded to Neutral from Underperform at Credit Suisse.
- BioForm Medical (NASDAQ: BFRM) was upgraded to Overweight from Neutral at Piper Jaffray.
- Alliance Data Systems (NYSE: ADS) was upgraded to Buy from Neutral at SunTrust.
Continue reading Analyst upgrades, downgrades and initiations: ART, BBY, HEV, NVDA, OSG, RDS.A ...
Posted Nov 2nd 2009 1:20PM by Tom Johansmeyer (RSS feed)
Filed under: Internet, Competitive strategy, Dell (DELL), Starbucks (SBUX), Marketing and advertising, Next big thing, Target Corp. (TGT), Best Buy (BBY)
Once upon a time, retailers measured success by the number of people walking by in the mall, how many entered the store, the percentage they spent, and basket size. Now, a world of zeroes and ones has changed their perspective entirely. Social media is expected to be the star during the coming holiday season, with retailers pushing Facebook, YouTube, and Twitter content to get in front of consumers and affect either online or in-store purchases. Smaller Christmas budgets are expected, so the fight is on to garner as large a share as possible of a shrinking pie.
Of course, nobody would come out and say, "Social media is nonsense, and I'm not getting anything for my investment." So, when the likes of Starbucks (NASDAQ: SBUX), JCPenney (NYSE: JCP), and Target (NYSE: TGT) say that social media is connecting them with their customers and leading to more effective campaigns and product launches, do take it with a grain of salt. What can't be ignored, however, is that they're committing more resources to social media marketing, even though it's still far too soon to tell if it will be effective.
Continue reading Retailers push social media, want bigger wallet share for Christmas
Posted Oct 23rd 2009 8:30AM by Steven Mallas (RSS feed)
Filed under: Earnings reports, eBay (EBAY), Wal-Mart (WMT), Amazon.com (AMZN), Best Buy (BBY)
Amazon (NASDAQ: AMZN), simply put, had a quarter to die for, the kind that all shareholders have on their wish lists. The Q3 numbers, which were released on Thursday after the bell, speak for themselves. Net sales: up 28%. Operating income: up 62%. Per-share profit: up 67% to 45 cents. Free cash flow for the trailing twelve months: up 98%. Yep, Amazon's fundamentals seem to be heading in the right direction.
According to our earnings preview, Wall Street was on record as wanting to see 33 cents per share on the bottom line. Amazon's management did a fine job of supplying further evidence to the market that the company's online business model is not only here to stay, but that it should provide shareholders with a significant amount of value over time.
Continue reading Amazon's third quarter is just what shareholders wanted
Posted Oct 16th 2009 11:00AM by Tom Johansmeyer (RSS feed)
Filed under: Competitive strategy, Microsoft (MSFT), Apple Inc (AAPL)
As you walk by the corner of East 59th Street and Fifth Avenue, it's hard to miss Manhattan's temple to retail tech. The Apple (NASDAQ: AAPL) store stands out amid the older, more traditional stores in the area -- both for its giant glass cube and what happens when you descend into it. So, is it so hard to believe that Microsoft's (NASDAQ: MSFT) move into the space could be successful?
At the turn of the century, the notion of Apple stores was mocked, with BusinessWeek proclaiming in May 2001, "Sorry, Steve: Here's Why Apple Stores Won't Work." Of course, it turns out BusinessWeek is what doesn't work, as evidenced by its recent acquisition by Bloomberg.
Continue reading MSFT retail: They laughed at Apple
Posted Oct 13th 2009 10:50AM by Tom Johansmeyer (RSS feed)
Filed under: Industry, Microsoft (MSFT), Dell (DELL), Hewlett-Packard (HPQ), Best Buy (BBY), Costco Wholesale (COST)
Microsoft's (NASDAQ: MSFT) new operating system, Windows 7, is set to be released on October 22, 2009, but it's unlikely to have an impact on PC prices. So, if you're feeling the urge to rush out and buy a new box, try to hold out until the end of the month. You'll get a bit more life out of it.
Fortunately, PC prices aren't expected to get much lower, so the entire supply chain -- from chips to software -- has nowhere to go but up. The effect, though, has been to put some serious pressure on manufacturers and retailers to keep from screwing up the release.
Continue reading Inventories add pressure to Windows 7 release
Posted Sep 19th 2009 2:10PM by Trey Thoelcke (RSS feed)
Filed under: Earnings reports, Microsoft (MSFT), Adobe Systems (ADBE), Best Buy (BBY), Kroger Co (KR), FedEx Corp (FDX), Fortune Brands (FO), Oracle Corp (ORCL)
Continue reading Earnings highlights: Adobe, Best Buy, FedEx, Kroger, Monsanto, Oracle, Palm ...
Posted Sep 16th 2009 1:00PM by Brian White (RSS feed)
Filed under: Competitive strategy, Best Buy (BBY)
Best Buy Inc. (NYSE: BBY) has been the subject of media speculation since the first quarter implosion of now-defunct retailer Circuit City. Billions of consumer electronics revenue dollars needed to go somewhere, after all. Based on Best Buy's most recent quarterly results, revenue dollars aren't just spilling into its coffers, even as the default market share gain from Circuit City went nuts last quarter. Will it continue?
All indications point to yes. Best Buy is the lone nationwide big-box consumer electronics retailer that is making all kinds of cutting-edge moves to remain relevant as its products and customers change. The theory around Best Buy's revenue drop in the last two quarters centers on more consumer electronics business going to mass retailer Wal-Mart Stores Inc. (NYSE: WMT), where customers have been taking refuge from the economic storm in the U.S. since last fall. Can Wal-Mart really compete head-to-head for dedicated consumer electronics customers once the money fog lifts as it is starting to do?
Continue reading Can Best Buy revenue soon match huge gains in market share?
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