Tariff impact sends Best Buy stock tumbling after earnings beat
Best Buy (BBY) shares plunge after the tech retailer's warning that tariff costs are likely to be passed onto consumers overshadowed its earnings beat. Wedbush Securities managing director of retail hardlines equity research Seth Basham joins Seana Smith and Madison Mills to discuss the results and his expectations for tariff impacts. "When we think about the impact of tariffs, it really comes down to how much in terms of the rate and then how long they stay in place," Basham says, explaining that a 20% tariff on imports from China results in a "pretty material change from their [previous] guidance." Also catch Yahoo Finance's coverage of Target's (TGT) own earnings print and how the retailer is forecasting tariff impacts. The analyst says, "Unfortunately, given the big ticket discretionary nature of the consumer electronics category, pricing power is more limited than other areas," adding that consumers will "pull back on those discretionary purchases most, and therefore, companies like Best Buy are going to be faced with a decision of how much to lower prices or invest in price, so to speak, at the impact of margins in order to sustain market share gains and sales growth." To watch more expert insights and analysis on the latest market action, check out more Catalysts here. This post was written by Naomi Buchanan.
