Consumers and business customers don't frequent Best Buy (NYSE: BBY ) as much as they used to. Revenue fell 9.6% in the first quarter while sales from stores open at least 14 months fell 1.3%. Shares of Best Buy stock fell more than 5% following the news.
The report comes not even a month after Amazon.com (NASDAQ: AMZN ) took its hurt, disappointing the Street. And yet there are noticeable and important differences between these two retail rivals, says Tim Beyers of Motley Fool Rule Breakers and Motley Fool Supernova in the following video.
Best Buy is cutting costs as Amazon is investing to grow. The e-tailer also has legitimate expansion options via its Amazon Web Services unit while Instant Video plays a game of catch-up with Netflix. Either way, Best Buy is banging up against an increasingly low ceiling as Amazon reaches for the clouds.
Do you agree? Please watch the video to get Tim's full take, and then let us know whether you would buy, sell, or short Best Buy stock at current prices.
Your turn on the throne
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