Shares of Best Buy Plummet on Fear of Margin Compression

Shares of Best Buy Co. Inc (BBY) plunged following the retail sector’s drop in sales this past weekend, making it TheStreet's Move of the Day. Retailers experienced a big decline in sales during the Thanksgiving weekend this year. Analysts at Wedbush Securities said that Best Buy could see margin compression from the lower product pricing on Black Friday and Cyber Monday which is expected to increase sales, but return muted profits. Analysts added that Best Buy's e-commerce site had technical issues throughout the weekend, with an extended outage. To make matters worse, competition from online retail giant Amazon.com (AMZN) was stiff as it advertised its everyday low prices.