Ramish Cheema
2 min read
In This Article:
Best Buy Co., Inc. (NYSE:BBY) is one of the Jim Cramer Warns Viewers About FOMO & Discusses These 19 Stocks.
Best Buy Co., Inc. (NYSE:BBY) is an American technology products retailer. The firm’s shares have lost 20.8% year-to-date as the firm has struggled from weak earnings performance and tariffs. Best Buy Co., Inc. (NYSE:BBY) cut its 2026 earnings guidance to a midpoint of $41.5 billion from an earlier $41.8 billion based on the assumption that tariffs will stay consistent until the end of this year. Best Buy Co., Inc. (NYSE:BBY)’s stock also struggled in 2024 as the firm bet heavily on AI PCs only to be left with excess inventory as demand failed to materialize. Cramer commented on this particular aspect:
“It’s moving because this Morgan Stanley piece revisiting Microsoft plus OpenAI. . . .Azure AI revenue, very strong. In keeping with what you [David] said, when you asked Sanjay Mehrotra the CEO [of Micro] [why the AI-enabled PC hasn’t taken off]. . his response was, just you wait. . .People don’t realize Sanjay, I know that Sanjay was a bit verbose, in his answers. . .look I’ve known Sanjay for years, you can tell him after this, but I think what you have is, you have a PC market that could be exploding. And I didn’t think that. That’s BestBuy situation, but it also makes sense with AMD going up every single day. Because that could be PC.”
A busy retail store showcasing a wide range of consumer electronics.
In his earlier remarks about Best Buy Co., Inc. (NYSE:BBY), Cramer discussed the firm’s earnings:
“The numbers out today were much better than expected—not better than expected, not better than feared, much better than expected. There was without a doubt a shock when you saw how good these were, because what it said is that Corie Barry and raised the div to, in this environment, is just doing incredibly well. And then there was this paragraph at the end of her talk where she said, of course, tariffs are coming, get a lot of stuff from China and Mexico, and we’re going to have to raise prices. We’re not sure how much we’re going to have to raise prices.”
While we acknowledge the potential of BBY as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and have limited downside risk. If you are looking for an extremely cheap AI stock that is also a major beneficiary of Trump tariffs and onshoring, see our free report on the best short-term AI stock.
READ NEXT: 20 Best AI Stocks To Buy Now and 30 Best Stocks to Buy Now According to Billionaires.
Disclosure: None. This article is originally published at Insider Monkey.
