Barnes & Noble Shares Plunged: What You Need to Know

Although we don't believe in timing the market or panicking over market movements, we do like to keep an eye on big changes -- just in case they're material to our investing thesis.

What: Shares of bookseller Barnes & Noble (NYSE: BKS  ) dropped as much as 10.1% today on moderately heavy trading.

So what: There's nothing new with Barnes & Noble itself, but longtime rival Borders Group is going through a high-profile case of bankruptcy-itis. Borders's announcement of new financing, additional store closings, and a tighter e-book partnership added up to sour grapes for other bookish retailers, including Barnes & Noble

Now what: Barnes & Noble's mid-February rally came to a grinding halt following a terrible financial report and a suspended dividend, and the stock trades some 43% lower nowadays. Fellow Fools have compared Barnes & Noble to the beleaguered heroes of Battlestar Galactica, beset on all sides by Amazon.com and Google, to name just two digital giants that are invading Barnes & Noble's traditional home turf. I see traditional bookstores of all stripes emulating an even more depressing role model.

Interested in more info on Barnes & Noble? Add it to your watchlist.

Fool contributor Anders Bylund owns shares of Google but holds no other position in any of the companies discussed here. Google is a Motley Fool Inside Value recommendation. Google is a Motley Fool Rule Breakers pick. Amazon.com is a Motley Fool Stock Advisor recommendation. The Fool owns shares of Google. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool is investors writing for investors.


Read/Post Comments (0) | Recommend This Article (2)

Comments from our Foolish Readers

Help us keep this a respectfully Foolish area! This is a place for our readers to discuss, debate, and learn more about the Foolish investing topic you read about above. Help us keep it clean and safe. If you believe a comment is abusive or otherwise violates our Fool's Rules, please report it via the Report this Comment Report this Comment icon found on every comment.

Be the first one to comment on this article.

Sponsored Links

Leaked: Apple's Next Smart Device
(Warning, it may shock you)
The secret is out... experts are predicting 458 million of these types of devices will be sold per year. 1 hyper-growth company stands to rake in maximum profit - and it's NOT Apple. Show me Apple's new smart gizmo!

DocumentId: 1457899, ~/Articles/ArticleHandler.aspx, 11/28/2014 2:43:05 PM

Report This Comment

Use this area to report a comment that you believe is in violation of the community guidelines. Our team will review the entry and take any appropriate action.

Sending report...


Advertisement