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Does RadioShack's Splashy Super Bowl Spot Even Matter?

By Erin Kennedy and Jason Moser – Feb 3, 2014 at 3:00PM

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RadioShack shares are up today thanks to its Super Bowl commercial, but the long-term story for the company still isn't encouraging for investors.

RadioShack (RSHCQ) was one of many companies participating in last night's "Ad Bowl," the unofficial contest among businesses vying for consumers' attention during the Super Bowl. The electronics retailer hit it big, according to USA Today's ad meter results, with its "Phone Call" spot ranking as consumers' fifth favorite commercial overall. Investors likewise embraced the ad from RadioShack, sending share upward today.

However, one cute commercial appealing to '80s nostalgia does not a viable business model make, argues Motley Fool analyst Jason Moser. The bottom line remains that RadioShack is suffering at the hands of giants like Wal-Mart and Amazon, as the electronics retailer has neither products nor services that differentiate it from them. Jason believes this splashy commercial shouldn't change anyone's mind about RadioShack's ongoing struggle.

Erin Kennedy has no position in any stocks mentioned. Jason Moser owns shares of Amazon.com. The Motley Fool recommends and owns shares of Amazon.com. 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.

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