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Why Is Best Buy (BBY) Stock Tanking Today?

Shares of Best Buy BBY were down through early afternoon trading on Monday amid reports that Amazon AMZN entered a new market that will put the online retail giant even further in direct competition with the electronics chain.

Amazon recently introduced its new “Smart Home Consultation” service, which is extremely similar to Best Buy’s Geek Squad technology consultation and support business. Best Buy’s stock price dropped 6.48% on the back of Monday’s news.

Over 7.5 million shares of Best Buy have traded hands so far, which is well above its 4.2 million average trading volume.

Recode first reported that, over the last few months, Amazon has slowly hired technology experts to offer free in-home Alexa help. The company will also offer fee-based product installation, consultations, and an array of other services.

Amazon introduced this new consultation and in-home technical assistance and installation business without much publicity. Shares of Amazon are up 1.88% through early afternoon trading on Monday.

According to Amazon’s website, the company’s “Smart Home Consultation” allows customers the chance to pick specific in-home appointment times with an Amazon expert. These new full-time Amazon employees will do everything from assist clients in the device purchasing process to setting up heating and cooling systems, home entertainment centers, and home security systems.

The company’s website lists the following under the “Build your smart home with an Amazon expert” section:

“Our experts are Amazon employees, not contractors. They have been handpicked for their technology experience, passion for customer service, and strong track record. All experts have been background-checked and are licensed and certified where applicable. Think of them like your technology-savvy best friend - they listen to your needs and customize solutions that work for you.”

The new in-home smart house services are currently available in seven cities: Seattle, Portland, San Francisco, San Diego, Los Angeles, San Jose, and Orange County.

Recodealso noted that Amazon is currently postings jobs for “field technicians” in multiple cities, including Tampa, Miami, Houston, Dallas, and Las Vegas. The postings note that some of the preferred qualifications for these new in-home, geek squad-type jobs include work as an Apple (AAPL) Genius or Geek Squad Double Agent.

Best Buy introduced its Geek Squad services in 2002. Geek Squad claims to offer five basic services: installation, set up, protection, support, and repairs.

Today, the company employs 20,000 Geek Squad agents, who, according to its website are “ready to help you online, on the phone, in your home, and at more than 1,100 Best Buy stores.”

Will You Make a Fortune on the Shift to Electric Cars?        

Here's another stock idea to consider. Much like petroleum 150 years ago, lithium power may soon shake the world, creating millionaires and reshaping geo-politics. Soon electric vehicles (EVs) may be cheaper than gas guzzlers. Some are already reaching 265 miles on a single charge.

With battery prices plummeting and charging stations set to multiply, one company stands out as the #1 stock to buy according to Zacks research.

It's not the one you think.

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Best Buy Co., Inc. (BBY): Free Stock Analysis Report
 
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