Best Buy Co Inc (NYSE: BBY) is having an overwhelmingly rough day in the market today in what is being called the Amazon effect. You see, Amazon.com, Inc (NASDAQ: AMZN) has been putting some pain on the retail sector, and they seem to be coming out with a product that’s putting serious pressure on Best Buy. As a result, concerns rose among investors, leading to the massive declines and prompting our friends at Trade Ideas to alert us to the losses. At the moment (11:44), BBY is trading at $53.85 per share after a loss of $4.02 per share (6.95%) thus far today.
BBY Falls On AMZN Geek Squad
As mentioned above, Best Buy isn’t having the best of days in the market today. In fact, the stock has been trading in the red since the pre-market, and for good reason. A big piece of revenue for BBY happens to be their Geek Squad. This is a service that provides consumers with access to “geeks” in order to repair their computers and more. However, news broke that Amazon is interested in starting its own product that’s similar to the Geek Squad.
Of course, we know that when Amazon gets into something new, it doesn’t take very long for them to dominate the market. So, BBY investors are concerned that if AMZN does break into Geek-Squad-like services, Best Buy will feel some serious pain in that sector.
Stop wasting your time! Start finding winning trades in minutes with Trade Ideas!
What We’ll Be Watching For Ahead
Moving forward, the CNA Finance team will be keeping a close eye on both AMZN and BBY. In particular, we’re interested in seeing if Amazon does indeed launch a competitor to Geek Squad and whether or not they will take a large part of the market share in that space. We’ll continue to follow the story closely and bring the news to you as it breaks!
Never Miss The News Again
Do you want real-time, actionable news delivered to your inbox? Join the CNA Finance mailing list below!