Best Buy's Results Were 'Downright Amazon-Like'
Best Buy Co Inc (NYSE: BBY)'s stock soared nearly 20 percent on Tuesday and hit a 52-week high of $39.36 after the company reported what Bloomberg Gadfly's Shelly Banjo described as "downright Amazon-like."
According to Banjo, Best Buy's earnings result did show consecutive quarters of double-digit online sales growth, but the company's language and tone painted an even more positive picture.
For instance, Best Buy no longer talked about store closures, bad weather and other "tired excuses." Rather, the company used words like "exploration" and "experimentation."
Banjo added that all of this came at a time when Best Buy "bucked some scary industry trends," including declining TV prices and declining electronic sales.
Best Buy's results were also boosted by a more-streamlined online checkout process, improving shipping times and an all-around improved website. Granted, Banjo stated that Best Buy is "late" in improving its online business, but its initiatives in online "seems to be paying off."
In fact, Best Buy's online sales growth is now outpacing the overall U.S. e-commerce market and now represent more than 10 percent of the company's total annual revenue of $40 billion.
Bottom line, Banjo stated that while it isn't exactly clear what took Best Buy so long to realize that "Amazon.com, Inc. (NASDAQ: AMZN) and Apple Inc. (NASDAQ: AAPL) had changed people's expectations" about shopping for consumer electronics.
"But for now it seems Best Buy has finally realized it's 2016," she concluded.
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|Aug 2016||Raymond James||Maintains||Buy|
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