Best Buy Co Inc (NYSE:BBY) made a failed attempt, (thank God for that), to obstruct its own sales on Black Friday. Technical failure is what the company was afflicted with, when its website remained out of service for a considerable time. However, the news from OPEC’s meeting and the consequent ‘still’ declining oil prices saved the day for the retailer of technology products. Bloomberg’s Julie Hyman reported the news.
“[…] Consumer electronics is one of the items that you look for during the Black Friday weekend as being heavily discounted. It is really an area that is emphasized at various retailers so at Best Buy Co Inc (NYSE:BBY) where that is what they do, that is their bread and butter, obviously that is an issue for them. If you look at the stock in reaction to this, we are still seeing gains in Best Buy shares […],” said Hyman.
The website was up and running later, and any lost revenues were seen as a mere background noise in light of the oil prices that Best Buy Co Inc (NYSE:BBY) will be benefiting from in the upcoming months. Hyman explained that it was not just this particular retailer that benefited from the bleak fate of oil companies, at least in the near future, but profitable reverberations were felt throughout the sector in terms of stock price.
“[…] So we are seeing consumer discretionary stocks actually lead the gains that we are seeing overall in the stocks today. Of course the other side of all of that is that the energy stocks are the worst performers, that is because of what we are seeing with the oil prices, which then also is a positive for the consumer discretionary companies,” remarked Hyman.
At the end of the topsy turvy day that was marked by thin levels of trading, Best Buy Co Inc (NYSE:BBY) shares were up 1.7% and were trading at $39.4 at the closing bell.
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