Is This Tech Retailer a Value Trap?

The following video is from today's MarketFoolery podcast, in which host Chris Hill, along with Jason Moser and Joe Magyer, discuss the latest business news. Shares of hhgregg fell more than 35% today after the company cut its full-year earnings forecast. With shares at a three-year low, does this represent a value play for investors or a value trap? In this segment, the guys analyze the headwinds facing both hhgregg and fellow big-box retailer Best Buy, the shift in market share to companies like Apple, Amazon.com, and Costco, and why investors should avoid the temptation of what appears to be a bargain stock price.

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Chris Hill owns shares of Amazon.com. The Motley Fool owns shares of Apple, Costco Wholesale, Amazon.com, and Best Buy. Motley Fool newsletter services have recommended buying shares of Amazon.com, Apple, hhgregg, and Costco Wholesale and creating a bull call spread position in Apple. The Motley Fool has a disclosure policy. We Fools don't all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. Try any of our Foolish newsletter services free for 30 days.


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