Key Stats for Best Buy Stock
- 1- Year Price change for Best Buy stock: -21%
- $BBY Share Price as of Feb. 2: $66
- 52-Week High: $92
- $BBY Stock Price Target: $81
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What Happened?
Best Buy (BBY) stock could face renewed pressure after JPMorgan downgraded the retailer from “overweight” to “neutral” on Monday, cutting its price target from $99 to $76. The bank’s concerns center on difficult comparisons ahead for the electronics giant.
JPMorgan analyst Christopher Horvers pointed to two key headwinds:
- First, the company is facing tough year-over-year comparisons following the successful launch of the Nintendo Switch 2 in June 2025.
- Second, the boost Best Buy received from the Windows 10 end of support in October 2025 won’t recur.
Best Buy reported strong third-quarter results last November with comparable sales growth of 2.7% and earnings per share of $1.40, up 11% year-over-year.
The company saw seven consecutive quarters of positive growth in computing, driven by customers upgrading from Windows 10 devices. Gaming also performed well, with the Switch 2 launch contributing to growth.
However, Horvers warned that an AI-driven memory shortage could push up component prices and hurt computing sales, which have been a major revenue driver.
Despite potential near-term support from higher tax refunds that could boost consumer spending, JPMorgan believes Best Buy stock faces limited upside.
The analyst noted that while short interest in the stock could trigger a squeeze back into the $70s, his long-term view remains cautious. He described the current moment as potentially missing “the forest for the trees” on Best Buy’s challenges.
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What the Market Is Telling Us About Best Buy Stock
The downgrade reflects growing concerns about Best Buy’s ability to sustain its recent momentum. After benefiting from product refresh cycles like the Switch 2 and Windows 11 upgrades, the company now faces the challenge of lapping those strong comparisons.
Best Buy’s management has acknowledged these dynamics. On the company’s recent earnings call, CFO Matt Bilunas noted that gaming growth would likely slow in Q4 compared to Q3, and that Switch 2 momentum would be lapped midway through next year.
- The retailer is working to offset these pressures through new initiatives, such as its recently launched marketplace, which now features over 1,000 sellers and 11 times more SKUs than before.
- It is also expanding its retail media network, Best Buy Ads, which contributed positively to gross profit in Q3.
Still, investors appear to be weighing whether these newer businesses can offset headwinds in core categories.
With Best Buy stock trading 38% below its 52-week high, the market seems to be pricing in significant uncertainty about the company’s growth trajectory in 2026.
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Disclaimer:
Please note that the articles on TIKR are not intended to serve as investment or financial advice from TIKR or our content team, nor are they recommendations to buy or sell any stocks. We create our content based on TIKR Terminal’s investment data and analysts’ estimates. Our analysis might not include recent company news or important updates. TIKR has no position in any stocks mentioned. Thank you for reading, and happy investing!
