Best Buy Stock Decline
Current Event #2
When you think of the highest stocks on Wall Street, you probably think of Apple and Microsoft. Interestingly enough, these two public companies are known for their electronics. Americans are known for needing the best and newest electronics. The iPhone is never good enough and new, new, new becomes a necessity. Americans don't think twice about tossing out their two month old TV set for a brand new one. With this idea in mind, you would think that the electronic industry is booming... especially during the holiday season.
Best Buy is a retailer that sells virtually any electronic product from: cell phones, washing machines, TVs, to headphones and movies-- the typical American "dream". But on October 25, their stock dropped 10%. With this industry easily being the most popular, it's easy to ask "why?". With the holidays so close, it's only expected that this stock company would be booming. Is it because their are other retailers that are starting to take over the industry or is this a reflection of this holiday season.
These two points are considered, but it is hard to tell what is the actual reason for the Best Buy dry spell. Competitors are definitely contributing to the decline of Best Buy. With stores such as Walmart and online stores, such as Amazon, Best Buy has a reason to be concerned. These retailers had successful years while Best Buy slowly showed signs of struggle. This is not the only reason for this decline. Top executives for Best Buy plan on leaving by the end of this month and by the end of this year. With nothing but bad luck, what is there to be expected from Best Buy? It will be interesting to follow the sales in the upcoming months. We hope that this is not directly related with the future economy.
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