Best Buy (BBY) got hammered yesterday after guiding lower on its store sales during the holiday season.
The stock had closed around $37 on Wednesday, and it opened around $27 on Thursday morning. This is a loss of one-third of the company value.
Now, in the long run, big box retailers like BBY have way too much overhead costs to effectively compete against AMZN or any of the other online merchants, so in the long run, it’s going to be very tough business for big box retailers.
But what about the short run ? And is shaving one-third of the company’s value an over-reaction ? BBY Chart analysis reveals a very interesting price action from yesterday. Watch the video for this analysis.