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Best Buy: Q3 Disappointment As Macro Headwinds Overcome Cost-Cutting Efforts
@Harrison Schwartz：
Best Buy's Q3 results missed revenue and EPS targets, with comparable sales growth at -2.9% and disappointing Q4 guidance, leading to a 7% decline Tuesday morning. The challenging macroeconomic environment, election distractions, and uncompetitive business model against Walmart and Amazon are significant headwinds for Best Buy. I remain bearish on BBY, expecting continued sales decline, potential dividend cuts, and store closures due to weak consumer demand and macroeconomic pressures. Contrary to most analysts, I doubt BBY's EPS will recover by 2027. Instead, I forecast a long-term decline that may accelerate with economic weakness next year. I plan to hold my short position in BBY until its valuation fairly discounts its chronic competitive pressures, or the company proves its ability to operate more profitable smaller stores. sfe-co2 Best Buy (NYSE:BBY) reported its Q3 results Tuesday morning. Its revenue of $9.45B was slightly below the consensus estimate of $9.63B, while its adjusted EPS was $1.26, below the $1.29 target. Its comparable sales growth was more disappointing at -2.9%; however, its gross margins were
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