With first-quarter earnings better than expected, could Best Buy be a best buy in the future?
On today's Investor Beat, host Chris Hill and Motley Fool analyst Tim Hanson explore Best Buy's latest earning reports. Chris notes that, while earnings were better than expected, revenues fell for the ninth straight quarter. Tim doesn't see Best Buy turning around with these figures and explains instead that the numbers reflect the company's structural weakness, as it doesn't have exclusive products, nor does it compete on anything besides price. Unless Best Buy focuses on a service-oriented model or finds exclusive products, Chris doesn't see the company getting any new traffic, despite beating their very low expectations.
Chris Hill and Tim Hanson have no position in any stocks mentioned. The Motley Fool recommends and owns shares of Apple. 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. The Motley Fool has a disclosure policy.