Dow gives back 0.2%. Watch these stock charts: NKE, S, CREE >>> READ MORE

Best Buy Sells Off — Thursday’s IP Market Recap

The consumer electronics retailer drops 7% on a sorry report


InvestorPlace Market RecapWhile the markets listed slightly into the red Thursday, Best Buy (NYSE:BBY) was headed downward full-throttle.

BBY shares dropped 7% on Thursday after the company announced a massive fourth-quarter loss and the impending closure of 50 of its big-box stores.

Best Buy lost $1.7 billion ($4.89 per share) in Q4 2011, down from $651 million in profits ($1.62) per share in the year-ago period. While adjusted earnings came out to a profit of $2.47 per share and beat expectations by 31 cents, revenues of $16.6 billion fell short of estimates for $17.2 billion.

The company also said it would shutter 50 of its big-box stores, though it has plans to renovate existing stores and open 100 smaller locations. Also in the report was a note saying the company would make “reductions to fund investments in enhanced customer experience and growth initiatives” — a not-so-good signal for the stores’ current customer service.

A number of Chinese stocks also were headed lower Thursday, as investors continue to fear a slowdown in the emerging market’s economy. Online stock Youku (NASDAQ:YOKU) was down 3.5%, as was the company it’s buying out, Tudou (NASDAQ:TUDO, -2.2%). Even PetroChina (NYSE:PTR) was down less than a percent on an otherwise celebratory day, in which the company announced it had surpassed energy titan Exxon Mobil (NYSE:XOM) in crude oil production.

Also on Thursday, mobile advertising solutions firm Millennial Media (NYSE:MM) went public, and the reception was glowing — shares almost doubled to $25 after pricing at $13.

Three Up

  • Red Hat (NYSE:RHT): Up 19.5% ($10.04) to $61.43.
  • Molycorp (NYSE:MCP): Up 9.4% ($2.97) to $34.50.
  • Aetna (NYSE:AET): Up 6.5% ($3.04) to $49.56.

Three Down

  • Mosaic (NYSE:MOS): Down 5.1% ($2.95) to $55.27.
  • Cabot Oil & Gas (NYSE:COG): Down 4.8% ($1.54) to $30.25.
  • Melco Crown Entertainment (NASDAQ:MPEL): Down 4.8% (67 cents) to $13.28.

Kyle Woodley is the assistant editor of As of this writing, he did not hold a position in any of the aforementioned securities. Check out recaps from previous trading days here.

Article printed from InvestorPlace Media,

©2017 InvestorPlace Media, LLC