Here's Why Best Buy's Stock Had A Knee-Jerk Reaction Today

While most retail stocks are flying high on the back of Black Friday, shares of electronics retailer Best Buy Co Inc BBY nosedived mid-day. The reason behind the sudden collapse in the company’s shares is being attributed to the crashing of its website and complaints from some users that they are not able to open the retailer’s website on Black Friday.

Bloomberg’s Julie Hyman recently reported on the problems with Best Buy’s website.

“We have reached out Best Buy for comment, through several different avenues, have not heard back as of yet and undoubtedly they are grappling with this issue on this incredibly important day for Best Buy. Consumer electronics is one of these items that you look at during the Black Friday weekend as being heavily discounted. It’s really an area that is emphasized at the various retailers. So, for Best Buy that’s what they do, that’s their bread and butter obviously this is an issue for them,” Hyman said.

“If you look at the stock’s reaction to this, we are still seeing actually gains in Best Buy shares, they pulled back a little bit after headlines started to surface about the problem with this website, but then they rebounded to some extent. So, it’s unclear, of course trading is thin today that would be caveat for that, but nonetheless this is something to keep an eye on” Hyman added.

When informed that Best Buy shares have actually seen a spike in activity today and at the time had traded half of their average daily volumes, Hyman said, “[...] it’s not necessarily uncommon, it’s a big day for them [retailers] in terms of sale. So, we are seeing consumer discretionary stocks actually lead the gains […]”