What's Barnes & Noble's Next Move?

By Jason Moser and Eric Bleeker, CFA – Jul 13, 2013 at 7:30PM

NYSE: BKS

Barnes & Noble

After Barnes & Noble's CEO resigned, the stock jumped 5.3%. Caution: Future disruption ahead.

The following video is from Wednesday's installment of The Motley Fool's Weekly Tech Review, in which analysts Eric Bleeker and Jason Moser look at the biggest stories driving the tech sector this week.

Barnes & Noble's (BKS) CEO is outta here. The stock soared 5.3% the next day. Is this a blessing in disguise for investors?

The exec shake-up is similar to what happened at Zynga, says Eric. That stock soared after CEO Mark Pincus merely changed positions, because investors are aching for change. Likewise, B&N investors are looking for a dramatic shift. A strategic review at the company means its Nook could potentially be sold off wholesale to minority owner Microsoft (MSFT 0.59%), and its College Bookstores could likewise be spun off. Jason argues that B&N's greatest value lies in its bricks-and-mortar stores. Will Barnes & Noble make the right restructuring moves?

The relevant video segment can be found between 7:30 and 11:22.

Eric Bleeker, CFA, has no position in any stocks mentioned. Jason Moser owns shares of Amazon.com. The Motley Fool recommends and owns shares of Amazon.com and Microsoft. We Fools don't 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.