What Happened?
Shares of electronics retailer Best Buy (NYSE: BBY) fell 9.2% in the afternoon session after the company reported mixed first-quarter 2025 results: its EBITDA missed, and it lowered its full-year revenue and EPS guidance.
On the other hand, BBY beat analysts' EPS expectations. Online sales and computing categories showed growth, but not enough to offset pressure in other key parts of the business. Still, this quarter could have been better.
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What The Market Is Telling Us
Best Buy’s shares are not very volatile and have only had 9 moves greater than 5% over the last year. In that context, today’s move indicates the market considers this news meaningful, although it might not be something that would fundamentally change its perception of the business.
The biggest move we wrote about over the last year was 9 months ago when the stock gained 16.6% on the news that the company reported strong second-quarter results. Revenue beat by a narrow margin, while EPS beat more convincingly. The company observed signs of demand stabilization and, as a result, raised EPS (non-GAAP) guidance for the full year ahead (ahead of expectations). Overall, this quarter had some key positives.
Best Buy is down 23.8% since the beginning of the year, and at $65.62 per share, it is trading 36.5% below its 52-week high of $103.30 from September 2024. Investors who bought $1,000 worth of Best Buy’s shares 5 years ago would now be looking at an investment worth $840.31.
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