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What: Shares of embattled electronics retailer Best Buy (NYSE:BBY) climbed 12% today, after its holiday revenue results topped Wall Street expectations.
So what: After several periods of decline, Best Buy's U.S. sales finally stabilized during the holiday season, suggesting that the turnaround plan under new CEO Hubert Joly is finally gaining some traction. Additionally, the better-than-expected results should also help founder Richard Schulze's bid to take the company private, as private equity investors will likely be more inclined to finance the deal if sales are stabilizing.
Now what: Working against Schulze's takeover plans, however, is the fact that Best Buy also lowered its free cash flow outlook for the second time since November. Joly reassured investors in a statement:
While it will be a journey with ups and downs, we are focused on becoming an increasingly effective multi-channel retailer and engaging with the tens of millions of consumers who shop us online and in-store.
Unless you're willing to speculate on a short-term takeover, though, I wouldn't bet on Best Buy's still-uncertain future just yet.
Interested in more info on Best Buy? Add it to your watchlist.
Brian Pacampara has no position in any stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. 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 has a disclosure policy.