A Fool Looks Back

Best Buy (NYSE: BBY  ) moved higher on Friday after the struggling consumer-electronics retailer posted somewhat encouraging news. Despite a sharp drop in international sales, domestic sales were flat during the critical holiday shopping season. A 10% pop in online sales was just enough to offset the slight decline in physical-store sales.

Given Best Buy's aggressive pricing and new seasonal price-matching policy, it will be interesting to see how this all plays out on the bottom line. It could get ugly. Best Buy hosed down its free cash flow outlook for fiscal 2013. However, the stock still moved initially higher on the news because it could've been worse. Isn't that the case for most Best Buy rallies these days?

Briefly in the news
And now let's take a quick look at some of the other stories that shaped our week.

  • Skullcandy (NASDAQ: SKUL  ) moved higher after an article speculating that the earbud maker is an attractive acquisition target. Skullcandy has shed more nearly two-thirds of its value since going public at $20 two summers ago, so putting its shareholders out of their misery isn't an entirely bad idea.
  • Baidu (NASDAQ: BIDU  ) rallied after a JPMorgan analyst waxed optimistically on the company's growth prospects for 2013. The stock has rallied so far in January after a rare down year in 2012. China's leading search engine has only closed lower in one other year since going public in 2005.
  • Citi initiated coverage of SodaStream (NASDAQ: SODA  ) with a buy rating. The company behind the popular system that turns water into fizzy soft drinks has been posting stellar results since going public three years ago.
  • Are Netflix (NASDAQ: NFLX  ) DVDs coming too quickly? A federal appeals court ruled that the video service's red mailers are getting an unfair advantage from the way the post office processes the rentals. Wait -- Netflix still offers DVDs? That's good to know.

Moving on
The Motley Fool's chief investment officer has selected his No. 1 stock for the next year. Find out which stock it is in our brand-new free report: "The Motley Fool's Top Stock for 2013." I invite you to take a copy, free for a limited time. Just click here to access the report and find out the name of this under-the-radar company.


Read/Post Comments (0) | Recommend This Article (4)

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: 2192736, ~/Articles/ArticleHandler.aspx, 8/29/2014 4:27:03 AM

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