People Buy and Go Digital this Holiday Season (BBY) (AMZN)
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Price: $85.89 +0.19%
Overall Analyst Rating:
SELL (= Flat)
Dividend Yield: 5.3%
Revenue Growth %: +1.1%
Overall Analyst Rating:
SELL (= Flat)
Dividend Yield: 5.3%
Revenue Growth %: +1.1%
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Best Buy (NYSE: BBY) has much to be thankful about after this past weekend with roughly 226 million shoppers estimated to be out, up 14 million from last year, and record retail sales of $52.4 billion, up 16.4 percent.
The company was one of a number of retailers who opened their doors at midnight on Thanksgiving to start off the holiday shopping season. Best Buy's incentive model consisted of offering its larger items for a discounted price. The company’s past models relied on the hype of new products to drive sales.
Many Americans this year, most likely in an attempt to avoid the crazies out there, turned their shopping to the internet on Black Friday as online shopping volumes rose 35 percent from last year. Reuters reported roughly 122.9 million Americans plan on shopping online for Cyber Monday, up 15 percent from last year. It's noted that Amazon.com (Nasdaq: AMZN) once again had the most online traffic for Black Friday with over 50 percent more visitors than any other retailer.
Investors are responding favorably to the strong growth numbers as the S&P 500 and Dow Jones are both trading up 2.97 and 2.24 percent in the early hours of trading today. Shares of BBY are trading up over 4 percent just following the opening bell to $26.70, while shares of AMZN are up over 5.8 percent to $193.
Reuters highlights while popular retails such as Macy's (NYSE: M) and Wal-Mart (NYSE: WMT) are outperforming holiday shopping sales so far, others such as Sears (Nasdaq: SHLD) and The Gap (NYSE: GPS) need to step it up.
The company was one of a number of retailers who opened their doors at midnight on Thanksgiving to start off the holiday shopping season. Best Buy's incentive model consisted of offering its larger items for a discounted price. The company’s past models relied on the hype of new products to drive sales.
Many Americans this year, most likely in an attempt to avoid the crazies out there, turned their shopping to the internet on Black Friday as online shopping volumes rose 35 percent from last year. Reuters reported roughly 122.9 million Americans plan on shopping online for Cyber Monday, up 15 percent from last year. It's noted that Amazon.com (Nasdaq: AMZN) once again had the most online traffic for Black Friday with over 50 percent more visitors than any other retailer.
Investors are responding favorably to the strong growth numbers as the S&P 500 and Dow Jones are both trading up 2.97 and 2.24 percent in the early hours of trading today. Shares of BBY are trading up over 4 percent just following the opening bell to $26.70, while shares of AMZN are up over 5.8 percent to $193.
Reuters highlights while popular retails such as Macy's (NYSE: M) and Wal-Mart (NYSE: WMT) are outperforming holiday shopping sales so far, others such as Sears (Nasdaq: SHLD) and The Gap (NYSE: GPS) need to step it up.
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