Best Buy Inc. (NYSE: BBY) has become a leader in DVD sales in the last half-decade, but the largest consumer electronics retailer in the U.S. may see that the future of the movie rental business is in downloading -- not discs.

Netflix Inc. (NASDAQ: NFLX) has been a pioneer in this space, as the largest DVD mail-order rental firm has begun embedding its software in Blu-ray players, set-top boxes, and other devices to stream digital content over the internet -- no disc needed. Best Buy apparently wants a little piece of that action.

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.

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.

Wal-Mart Stores Inc. (NYSE: WMT) wants to sell you everything it possibly can. Need funeral arrangements? The world's largest retailer wants to help. $4 prescription drugs? It has you covered. In fact, it's hard to think of any product category that Wal-Mart does not seem at least a little covered with. For good reason, too: Wal-Mart has tapped out much of the short-term growth by virtue of it being almost everywhere in the U.S. and selling everything you can possibly think of.

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.

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.

Best Buy Inc. (NYSE: BBY) may be starting to realize that consumer lifestyles sometimes don't fit into the neatly-packaged 10:00 a.m. to 8:00 p.m. workday. As such, the leading consumer electronics retailer plans to open its first 24-hour location in NYC's Union Square. What does Best Buy gain by this?

Well, the ability to see if gadget consumers (which we all are in one form or another) need to get their fix at all hours of the day or night. Already, Wal-Mart Stores Inc. (NYSE: WMT) ensures its supercenter big-box locations are open 24 hours a day, although it's hard to see consumers scrambling to buy that iPhone charger or flat-screen television at 3:00 am. Still, Best Buy's new 24-hour location will be just a sniff away from Apple, Inc.'s (NASDAQ: AAPL) 4th Avenue retail location.

In a sign that this holiday retail season may be as competitive as any in recent memory, consumer electronics behemoth Best Buy Co. (NYSE: BBY) will be delivering that new 52-inch LCD television and setting it up with all your equipment -- for free.

That alone will one-up merchants like Wal-Mart Stores Inc. (NYSE: WMT) and others who move mass merchandise only but offer zero support after that. Well, unless you need to return a defective item, that is. Best Buy's gambit here is a good one: free delivery and especially hookup of a new (and complicated) flat-panel television is a huge benefit over the competition. Will competitors follow?

Best Buy, Inc. (NYSE: BBY) wants to make the U.S. consumer believe that the e-reader is the "must-have" gadget of this holiday season. To that end, the nation's largest consumer electronics retailer has launched a special website (not active yet, apparently) where it will make the e-reader category and associated gadgets headliners of this holiday season's gift giving.

It's more than just Best Buy believing this. Analyst firms like iSuppli are behind the agenda as well. Best Buy's holiday gadget selection will feature more than 120 products priced between $25 and $75, with brands like Sony, Leapfrog and Sharper Image.

Best Buy, Inc. (NYSE: BBY) continues to delve outside its retail roots and add services anywhere it can. But, this latest venture is a bit baffling: backup services for your mobile phone?

Just a few weeks after speculation that Best Buy Co. (NYSE: BBY) may be on the lookout for buying up video game retailer Gamestop Corp. (NYSE: GME), the CFO of the largest consumer electronics company in the U.S. is now saying that the used video game industry is "strategically very interesting." This is sly-speak for "we're on the prowl for the acquisition in the space that makes the best sense."

Here are some highlights from last week's earnings coverage from BloggingStocks:

• Adobe Systems Inc. (NASDAQ: ADBE) just beat low Q3 earnings estimates but revenue also declined.
• Best Buy Co. Inc. (NYSE: BBY) earnings fell short of estimates but revenue was better than expected.
• Cracker Barrel Old Country Store Inc. (NASDAQ: CBRL) posted better-than-expected Q4 earnings.
• Discover Financial Services (NYSE: DFS) posted a surprise Q3 profit but shares rose slightly on the news.
• Dress Barn Inc. (NASDAQ: DBRN) reported modest growth in both net income and revenue in Q4.
• FedEx Corp. (NYSE: FDX) said that its Q1 earnings and revenue dropped but its cash flow has improved.

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?

Best Buy (NYSE: BBY) reported Q2 earnings on Tuesday. The retailer didn't do too badly on the top line, but the bottom line could have been better. Revenues were higher by 12%, and net income decreased 23% to 37 cents per share.

There are a couple things to consider here in terms of context. Best Buy's Europe locations helped to drive the revenue performance. Best Buy Europe also was partially responsible for the expansion seen in selling, general and administrative costs (without that segment and other acquisitions, SG&A would have been down).

Retail sales numbers jumped more last month than they have in three years. It would be understandable to assume that this was due to the "cash for clunkers" program, which ran through August, but even excluding auto-sales retail numbers were higher than expected.

Core retail sales (which excludes autos and gasoline) was up 1.1% in August, which was almost 300% higher than anticipated. The question at this point is whether that number would have been even better and ultimately more beneficial for the economy if the government had not siphoned so much spending into autos.