NEW YORK (TheStreet) -- It really makes you wonder what went wrong when you see a company down 30% in a single trading session, TheStreet's Jim Cramer said of Best Buy
The co-portfolio manager of the Action Alerts PLUS portfolio said most analysts had been bullish on the stock, all the way into the upper $30s.
Those expectations were way off, Cramer said. The company reported sales fell 0.8% for the nine weeks ended Jan. 4, while analysts had expected growth and no real degradation in gross margins.
However, online sales were higher in the holiday period by 23.5%, creating chatter that Best Buy will try and become more like Amazon (AMZN).
Cramer advised investors who want to buy the stock to wait until Friday because these types of violent moves tend to pan out over a two-day period.-- Written by Bret Kenwell in Petoskey, Mich. Follow @BretKenwell
Check Out Our Best Services for Investors
- $2.5+ million portfolio
- Large-cap and dividend focus
- Intraday trade alerts from Cramer
Access the tool that DOMINATES the Russell 2000 and the S&P 500.
- Buy, hold, or sell recommendations for over 4,300 stocks
- Unlimited research reports on your favorite stocks
- A custom stock screener
- Model portfolio
- Stocks trading below $10
- Intraday trade alerts