Will Black Friday 2013 Kill BBY Stock?

by Burke Speaker | November 27, 2013 10:51 am

With Best Buy (BBY[1]) having a so-far great year and BBY stock up 233% year-to-date, its next move is “winning” Black Friday — with deals that are meant to kill any competition.

Best Buy Will Black Friday 2013 Kill BBY Stock?BBY is getting into the game early, opening its doors at 6 p.m. on Thanksgiving — aimed at getting a leg up on other retailers.

Its Black Friday deals are among some of the best[2] — with hundreds off electronics and devices that shoppers aim for.

For instance, its Kindle Fire HD 7 is priced at $99 for Black Friday 2013, down from $199. Another BBY Black Friday deal is its Insignia 39″ LED HDTV is $169.99, down from $329.99; and a 13″ Apple MacBook Pro with Retina Display is $1,099 down from $1,299. More Best Buy Black Friday deals can be viewed here.[3]

From the investing side, though, some analyst fear that “winning” Black Friday 2013 will mean BBY stock may lose.

As InvestorPlace noted last week, BBY stock got punished for its fourth-quarter margin warning:

“Best Buy basically came out and said it wants to win the holiday season shopping wars. As such, BBY plans to embark on an aggressive program of price matching, door buster and other deep discount deals. The company also said it would open on Thanksgiving Day. The increased deals and its commitment to winning over holiday shoppers could come at the expense of margins, and the admission of such directly from the company caused the shares of Best Buy stock to drop.

Essentially, the company is saying it will give up some Best Buy earnings in Q4 if that means increasing market share during the holidays.”

This may be a winning strategy for Best Buy in the long run, InvestorPlace added. But short term? BBY stock investors don’t like it much.

BBY stock is down in early morning trading just a bit — but the real test comes tomorrow through Friday.

Endnotes:
  1. BBY: http://studio-5.financialcontent.com/investplace/quote?Symbol=BBY
  2. some of the best: http://mashable.com/2013/11/27/best-buy-black-friday-2013/
  3. More Best Buy Black Friday deals can be viewed here.: http://mashable.com/2013/11/27/best-buy-black-friday-2013/#_

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