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Goldman Sachs Slashes Best Buy (BBY) PT to $59, Warns of Volume and Pricing Risks

Best Buy Co., Inc. (NYSE:BBY) is included among the 14 Value Stocks with Highest Dividends.

Pixabay/Public Domain

On April 13, Goldman Sachs analyst Kate McShane double-downgraded Best Buy Co., Inc. (NYSE:BBY) to Sell from Buy. It also reduced the price target to $59 from $76. The firm sees risk to sales following the Q1 report as higher memory costs begin to flow into laptop and computer prices. It also pointed to margin pressure. Consumers may shift toward lower-priced models, and volumes could decline as manufacturers scale back shipments, the analyst said in a research note. Goldman added that the company is still struggling to grow its appliance and consumer electronics categories.

During its Q4 2026 earnings call, Best Buy shared its outlook for fiscal 2027. Revenue is expected to range between $41.2 billion and $42.1 billion. The company said comparable sales could fall 1% or rise 1%, reflecting a steady but uncertain demand environment. It also expects an adjusted operating income rate of about 4.3% to 4.4%, with adjusted diluted EPS between $6.30 and $6.60.On capital allocation, Best Buy plans to spend about $300 million on share repurchases. Capital expenditures are expected to be around $750 million. Corie Barry, CEO, said the company is operating in a mixed macroeconomic backdrop and expects comparable sales growth to remain within the range of down 1% to up 1%. Matthew Bilunas, CFO, noted that the gross profit rate should improve by about 30 basis points from the prior year, supported by growth in Best Buy Ads and its US Marketplace operations.

Best Buy Co., Inc. (NYSE:BBY) focuses on delivering technology solutions in a more personalized way. It operates through two segments: Domestic and International.

While we acknowledge the risk and potential of BBY as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and doing so within a shorter time frame. If you are looking for an AI stock that is more promising than BBY and that has 10,000% upside potential, check out our report about this cheapest AI stock.

READ NEXT: 13 NASDAQ Stocks with Highest Dividends and 15 Cash-Rich Dividend Stocks to Invest In Right Now

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The $250 Trillion AI Hype is Real. A few years from now, you’ll probably wish you’d bought this stock.

Dr. Inan Dogan

Dr. Ian Dogan

Co-Founder and Research Director at Insider Monkey

When Jeff Bezos said that one breakthrough technology would shape Amazon’s destiny, even Wall Street’s biggest analysts were caught off guard.

Fast forward a year and Amazon’s new CEO Andy Jassy described generative AI as a “once-in-a-lifetime” technology that is already being used across Amazon to reinvent customer experiences.

At the 8th Future Investment Initiative conference, Elon Musk predicted that by 2040 there would be at least 10 billion humanoid robots, with each priced between $20,000 and $25,000.

Do the math. According to Musk, this technology could be worth $250 trillion by 2040.

Put another way, that’s roughly equal to:

  • 175 Teslas
  • 107 Amazons
  • 140 Metas
  • 84 Googles
  • 65 Microsofts
  • And 55 Nvidias

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It’s a leap so massive, it could reshape how businesses, governments, and consumers operate worldwide.

Even if that $250 trillion figure sounds ambitious, major firms like PwC and McKinsey still see AI unlocking multi-trillion-dollar potential.

How could anything be worth that much?

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  • Bill Gates sees artificial intelligence as the “biggest technological advance in my lifetime,” more transformative than the internet or personal computer, capable of improving healthcare, education, and addressing climate change.
  • Larry Ellison — through Oracle, is spending billions on Nvidia chips and partnering with Cohere to embed generative AI across Oracle’s cloud and apps.
  • Warren Buffett — not known for tech hype — says this breakthrough could have a ‘hugely beneficial social impact.

When billionaires from Silicon Valley to Wall Street line up behind the same idea — you know it’s worth paying attention to.

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Dr. Inan Dogan

Dr. Ian Dogan

Co-Founder and Research Director at Insider Monkey

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