Analyst: Walmart, Amazon Splitting Circuit City TV Business
An industry analyst last week cut his rating for Best Buy's stock- calling ti "too risky." According to Barrons' Tech Trader Daily column, Morgan Stanley's Gregory Melich has reduced his rating for Best Buy from "Equal Weight" to "Underweight," citing margins that are too low.
Melich also noted that based on first-quarter market share data, he believes the TV business vacated by Circuit City has been largely split between Amazon and Walmart, rather than Best Buy. In the first quarter, when Circuit City went out of business, Best Buy's market share dropped, while Walmart gained at the low end and Amazon did so at the high end, Melich wrote.