Simply said, my opinion is that Best Buy is going the way BlockBuster did. While Netflix was Blockbuster’s nemesis; I see Amazon.com as Best Buy’s nemesis.
From my personal experience, I bought most of my electronic gadgets from Amazon using Amazon Prime for 2 days shipping. While I’m paying an annual fee for the Amazon Prime, the benefit already out-weighted the cost due to my watching videos, free book rental, and the 2 days shipping I used all the times.
I can’t help thinking that there may be a lot more people doing the same thing as I did since there is real savings from buying electronic equipments from Amazon.com comparing to buying from Best Buy.
Enough of fundamental, the most important factor is that the BBY chart looks bearish. A break thru October 2011 low of $21.79 will start another leg down.
Disclosure: I’m short BBY
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