More likely, it will be subject to increased competition from its major competitors and will be forced to cut margins further in order to retain its current sales levels. Thus, there is little compelling about Best Buy stock but there are many reasons to be worried about its capacity for appreciation in the coming years. Given that, only a hold recommendation makes sense. Best Buy is a good company, with a strong name and a substantial market share, but it lacks the upside that other major retailers in its category have and for that reason as well as the ones listed above it is difficult to get too excited about Best Buy stock at present.
Works Cited:
Adegoke, Y. (2008). Best Buy to buy Napster for $121 million. Reuters. Retrieved November 30, 2010 from http://www.reuters.com/article/idUSN1550308820080915
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