Dec 13, 2012 Market Foolery Podcast

TL;DR

Best Buy founder Richard Schulze is rumored to make a bid for the company, Apple Maps faces backlash as Google Maps returns to iPhone.

Transcript

it's Thursday December 13th welcome to Market fery I'm Chris Hill joining me in studio today for mlef one Jason Moser and from MF stock adviser Joe tener bruso happy Thursday guys happy Thursday good to see you um we've got uh the latest in the Apple Maps Saga we've got the most Googled stocks of 2012 we are going to start in the world of retail sh... Read More

Key Insights

• 😀 Best Buy faces tough competition from Amazon in terms of price, selection, and convenience.
• 🤪 Going private may be a path for Best Buy to make necessary changes without shareholder pressure.
• 🥺 Apple faced backlash with Apple Maps, leading to the return of Google Maps on the iPhone.
• 👾 Apple needs to focus on its hardware and ecosystem strengths rather than competing with Google in the mapping space.
• 🥹 Investors should consider capitalizing on Apple's short-term price decline as it still holds significant competitive advantages.
• 🍭 Facebook, Zynga, and Yelp were the most Googled stocks of 2012, reflecting the buzz around recent IPOs.
• 🏋️ Arena Pharmaceuticals gained significant attention due to FDA approval of its weight management drug.

Questions & Answers

Q: Is Best Buy a good investment given the rise of Amazon?

Best Buy faces tough competition from Amazon due to higher overhead, limited selection, and lack of convenience. It may not be a good long-term investment.

Q: Should Best Buy go private to make difficult decisions without shareholder pressure?

Going private may be a viable solution for Best Buy to make the necessary changes without public scrutiny, as suggested by industry experts.

Q: Why is Best Buy different from Radio Shack in terms of investment opportunity?

Best Buy has an owner's interest in founder Richard Schulze and potential for a smaller, more focused company, while Radio Shack has no one looking to protect its interests and a balance sheet filled with obsolete inventory.

Q: Is now a good time to buy Best Buy shares if a buyout is rumored?

While aggressive traders and speculators may see an opportunity, long-term investors are advised to look for better risk-reward options and avoid speculative investments.

Summary & Key Takeaways

• Best Buy shares soar after reports of founder Richard Schulze making a bid for the company.

• Analysts question the viability of Best Buy in competing with Amazon due to their higher overhead, lack of selection, and convenience.

• Analysts suggest that Best Buy may need to go private and find a unique offering, such as a service like The Geek Squad, to survive in a market dominated by Amazon.