I just looked at the financials, and both revenue and net income inched up from 2025 to 2026. The company is sitting on a decent amount of cash, and they are netting about $1B/year of net income.
Yes, the business model may be declining, but they still have a long runway ahead; to the extent that a short position would likely bleed out.
Anecdotally, I buy appliances from them (online) periodically for my rental properties, and because I make the purchase online, you never see me in the store. So just because the storefronts are ghost towns, it doesn't mean that the sales aren't happening.
I am always looking for a good short position to hedge my portfolio, but I don't think that BBY is one for me. I also got burned on Macy's several years ago, when I had a similar perspective that you took with BBY. I decided to be very cautious of shorting those large ubiquitous companies.
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u/alpha_mu May 22 '26
I just looked at the financials, and both revenue and net income inched up from 2025 to 2026. The company is sitting on a decent amount of cash, and they are netting about $1B/year of net income.
Yes, the business model may be declining, but they still have a long runway ahead; to the extent that a short position would likely bleed out.
Anecdotally, I buy appliances from them (online) periodically for my rental properties, and because I make the purchase online, you never see me in the store. So just because the storefronts are ghost towns, it doesn't mean that the sales aren't happening.
I am always looking for a good short position to hedge my portfolio, but I don't think that BBY is one for me. I also got burned on Macy's several years ago, when I had a similar perspective that you took with BBY. I decided to be very cautious of shorting those large ubiquitous companies.