Is Barnes & Noble’s Nook Spinoff A Win For the Apple iPad?

Shares of seemingly struggling bookseller Barnes & Noble (NYSE: BKS  ) have been on fire so far in 2014, surging well over 50% year to date and leaving broad market indices such as the S&P 500 in its dust.

BKS Chart

BKS data by YCharts

Fueling that run all the more, Barnes & Noble stock surged once again recently in the wake of Barnes & Nobles report for its fiscal year 2014 annual performance. More to the point, Barnes & Noble announced during the earnings report that it would be divesting its long-struggling Nook e-reader and tablet division, leaving investors struggling to grasp what this move means for Barnes & Noble's digital future as well as the competitive landscape for other hallmark tablets like Apple's (NASDAQ: AAPL  ) iPad.

A win or loss for Barnes & Noble?
Some Barnes & Noble shareholders have argued for some time now that this move will unlock significant shareholder value since it will both enable the Nook management team to focus on competing against the likes of Apple's iPad, while also helping the market recognize the true value of Barnes & Noble's surprisingly robust brick and mortar retail business.

From an investors' perspective, this is absolutely the right move. The Nook lost its toe-hold in the tablet market some time ago as powerhouse tablets like Apple's iPad and others control the bulk of shipments in developed markets like the United States. The company may not be saying it, but this move opens up the door for Barnes & Noble to let the Nook potentially die a quieter death at the hands of Apple's iPad. In the video below, tech and telecom specialist Andrew Tonner looks at Barnes & Nobles recent move in greater detail.

This little-known company is set to soar with the release of Apple's iWatch
Apple recently recruited a secret-development "dream team" to guarantee its newest smart device was kept hidden from the public for as long as possible. But the secret is out, and some early viewers are claiming its everyday impact could trump the iPod, iPhone, and the iPad. In fact, ABI Research predicts 485 million of this type of device will be sold per year. But one small company makes Apple's gadget possible. And its stock price has nearly unlimited room to run for early in-the-know investors. To be one of them, and see Apple's newest smart gizmo, just click here!

Read/Post Comments (0) | Recommend This Article (1)

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: 3011221, ~/Articles/ArticleHandler.aspx, 9/1/2015 8:39:42 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...

Andrew Tonner

Andrew Tonner is a tech specialist for The Motley Fool. He is a graduate of The University of Arizona with a degree in Finance.

Today's Market

updated 11 hours ago Sponsored by:
DOW 16,528.03 -114.98 -0.69%
S&P 500 1,972.18 -16.69 -0.84%
NASD 4,776.51 -51.82 -1.07%

Create My Watchlist

Go to My Watchlist

You don't seem to be following any stocks yet!

Better investing starts with a watchlist. Now you can create a personalized watchlist and get immediate access to the personalized information you need to make successful investing decisions.

Data delayed up to 5 minutes

Related Tickers

8/31/2015 4:00 PM
AAPL $112.76 Down -0.53 -0.47%
Apple CAPS Rating: ****
BKS $15.61 Down -0.06 -0.38%
Barnes & Noble CAPS Rating: *
SSNLF $875.00 Down +0.00 +0.00%
Samsung CAPS Rating: ***