Fool contributor Tim Brugger also notes that Best Buy’s efforts to compete with online deals at Amazon.com, Inc. (NASDAQ:AMZN) is wrecking its margins. Amazon.com, Inc. (NASDAQ:AMZN)’s commitment to sales growth at (nearly) all costs is legendary, and its infrastructure is limited to central warehouses. A retail outfit trying to compete with Jeff Bezos might as well attach a big boulder to its ankle before starting that race, just to drive home the severity of its handicap. Fool contributor Travis Hoium notes that there’s simply not much of a compelling reason to visit Best Buy rather than ordering online.
Is the surge warranted? Well, take a look at Best Buy’s latest quarterly earnings. Does a 58% drop in net income and a 10% drop in revenue sound like compelling reason to buy shares today?
Putting the pieces together
Today, Best Buy has few of the qualities that make up a great stock, but no stock is truly perfect. Digging deeper can help you uncover the answers you need to make a great buy — or to stay away from a stock that’s going nowhere.
The article Is Best Buy Destined for Greatness? originally appeared on Fool.com and is written by Alex Planes.
Fool contributor Alex Planes holds no financial position in any company mentioned here. Add him on Google+ or follow him on Twitter @TMFBiggles for more insight into markets, history, and technology.The Motley Fool recommends Amazon.com and Apple. The Motley Fool owns shares of Amazon.com, Apple, and Microsoft.
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