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 book and Nook seller Barnes & Noble
So what: On the bright side, sales of B&N's Nook reader were up significantly from last year's holiday season. However, those sales look like they'll miss expectations. Worse, investments that B&N has made to help fuel that growth are also fueling a much-larger-than-expected loss for the year.
If you ask B&N management, though, the Nook business is absolutely one worth owning -- perhaps even on its own. In its comments today, B&N noted that it's exploring strategic options for the Nook business, including spinning it off.
Now what: I have a really tough time getting excited about Barnes & Noble as an investment. On one hand, you have a brick-and-mortar bookseller. It's done better on that side than its bankrupt rival Borders, but it's an imperiled business nonetheless. On the other side, there's a promising growth business in the Nook e-readers. That's a more interesting segment, but it's costly, and it's going head-to-head with Amazon.com
Want to keep up to date on Barnes & Noble? Add it to your watchlist.
The Motley Fool owns, and Motley Fool newsletter services have recommended buying, shares of Amazon.com. Try any of our Foolish newsletter services free for 30 days. We Fools don't all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors.
Fool contributor Matt Koppenheffer has no financial interest in any of the companies mentioned. You can check out what Matt is keeping an eye on by visiting his CAPS portfolio, or you can follow Matt on Twitter, @KoppTheFool, or on Facebook. The Fool's disclosure policy prefers dividends over a sharp stick in the eye.
More from The Motley Fool
3 Great Reasons to Sell Barnes & Noble, Inc. Stock
The beleaguered bookseller continues to disappoint investors.
What Happened in the Stock Market Today
Stocks continued their strong start to 2018. Holiday sales at Barnes & Noble disappointed investors, though, and Momenta Pharmaceuticals reported a successful drug trial.
Why Barnes & Noble, Inc. Stock Plunged Today
The bookselling retail chain endured a difficult holiday season. Here's what investors need to know.