Amazon moves causes Best Buy to lose $1 billion in market cap overnight

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July 12, 2017 by Paul Dughi

smarat home

Recode reports that Amazon has been hiring folks to provide in-home installations for electronics and smart home devices.  The operation is up and running in 7 markets so far.

Smart home gadgets are selling, but Amazon reports higher than normal return rates, in part because they can be tough to set up the first time.  So, it makes sense to have people than can help with the install and lower returns.

You know who isn’t happy about the Amazon service?  Best Buy.

As a competitor to the Geek Squad, Best Buy has a lot to lose in this space.  Just the announcement that Amazon was entering the business caused a huge stock price drop – wiping out more than $1 BILLION DOLLARS in market cap literally overnight.

Best Buy

Ouch.

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