This Day On The Street
Continue to site
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here

Stocks to Watch: Best Buy, Groupon, Salesforce

NEW YORK -- Best Buy (BBY - Get Report), the consumer-electronics chain, ended talks with founder Richard Schulze over a deal in which he and a group of buyout firms proposed to take a minority stake in the company in exchange for three seats on the board, The Wall Street Journal reported, citing people familiar with the matter.

It appears Schulze won't be able to execute the buyout of Best Buy he proposed last year, the people told the newspaper. But Schulze could come back to Best Buy with another proposal, they said.

Best Buy also reports earnings Friday, and is expected by Wall Street to post quarterly profit of $1.53 a share on revenue of $16.32 billion.

Why Best Buy Should Love and Embrace

Andrew Mason has been removed as Groupon's (GRPN - Get Report) CEO, effectively immediately, and is being replaced by Executive Chairman Eric Lefkofsky and Vice Chairman Ted Leonsis in the interim.

Lefokofsky and Leonsis will be part of the newly created Office of the Chief Executive. Groupon's board will start searching for a new CEO.

Groupon reported fourth-quarter results on Wednesday that caused some to question whether Mason would continue much longer in the role.

In the release announcing Mason's departure, Groupon noted that its first-quarter outlook remains unchanged. On Wednesday, Groupon provided first-quarter guidance that was sharply below Wall Street expectations. It expects sales to be between $560 million and $610 million, a year-over-year increase of between 0% and 9%. Wall Street analysts are expecting $647.7 million.

Andrew Mason Out at Groupon (CRM - Get Report) posted a fourth-quarter adjusted profit, excluding items, of 51 cents a share, topping analysts' forecasts of adjusted earnings of 40 cents a share.

Revenue in the quarter rose 32% to $834.7 million, above estimates of $830.8 million.

The software company said it expects to post first-quarter adjusted earnings of 40 cents to 42 cents a share on revenue of between $882 million and $887 million. Analysts expect adjusted earnings of 42 cents a share on revenue of $885.9 million.

Boeing (BA - Get Report) plans to cut hundreds of workers at a South Carolina factory where it builds 787 Dreamliners, the Journal reported, citing a person familiar with the plan.

The cuts started recently and are expected to be implemented throughout 2013, the newspaper said. Staffing levels could be reduced by up to 20% -- at least for certain key teams -- at Boeing's North Charleston, S.C., campus, which Boeing said has at least 6,000 employees, the Journal said.

The job cuts aren't related to the recent batter problems that grounded the Dreamliner.

Gap (GPS - Get Report) said Thursday that fourth-quarter profit rose 61%, and the retailer raised its annual dividend to 60 cents a share from 50 cents.

Revenue rose 10% to $4.73 billion in the quarter. Same-store sales rose 5%.

Act Two of This Week's Retail Earnings

-- Written by Joseph Woelfel

>To contact the writer of this article, click here: Joseph Woelfel

>To submit a news tip, send an email to:
Copyright 2013 Inc. All rights reserved. This material may not be published, broadcast, rewritten, or redistributed. AP contributed to this report.

Check Out Our Best Services for Investors

Action Alerts PLUS

Portfolio Manager Jim Cramer and Director of Research Jack Mohr reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
Stocks Under $10

David Peltier uncovers low dollar stocks with serious upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
14-Days Free
Only $9.95
14-Days Free
Dividend Stock Advisor

David Peltier identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Updates with exact steps to take - BUY, HOLD, SELL
Trifecta Stocks

Every recommendation goes through 3 layers of intense scrutiny—quantitative, fundamental and technical analysis—to maximize profit potential and minimize risk.

Product Features:
  • Model Portfolio
  • Intra Day Trade alerts
  • Access to Quant Ratings
Real Money

More than 30 investing pros with skin in the game give you actionable insight and investment ideas.

Product Features:
  • Access to Jim Cramer's daily blog
  • Intraday commentary and news
  • Real-time trading forums
Only $49.95
14-Days Free
14-Days Free
BA $132.56 0.00%
BBY $37.78 0.00%
CRM $73.93 0.00%
GPS $27.96 0.00%
GRPN $3.41 0.00%


Chart of I:DJI
DOW 16,472.37 +200.36 1.23%
S&P 500 1,951.36 +27.54 1.43%
NASDAQ 4,707.7750 +80.6910 1.74%

Free Reports

Top Rated Stocks Top Rated Funds Top Rated ETFs