Flash! B&N shares plunge 8% in 2 hours

Flash! B&N shares plunge 8% in 2 hours

“Wow, Jimmy!  You were getting Cs last year, and you got an A in English.  Unfortunately, we though you were going to get an A+…so you are grounded, young man!”

Is the e-book market overheated or what?  I congratulated Barnes & Noble on their 2nd Quarter report in this earlier post.

The switch from relying on brick and mortar (which is a predictably shrinking market) to digital on the company’s part has been bold required investment…but sales overall were up, and the NOOKcolor is the number one item at Barnes & Noble.  Yes, brick and mortar sales were down…but that’s the case for most stores.

Unfortunately for them, they “didn’t meet Wall Street expectations”.  That’s what I mean by my fictional quote at the beginning of this article.  There are lots of people like that: “Carol, it’s great that you cleaned your room…did you clean your bathroom?”  I expect B&N will recover a bit from this slide…I think this is a “mouse jerk” reaction, primarily.

However, don’t invest based on what I say.  🙂  I think they are making pretty good decisions right now, and Wall Street will now lower expectations, so it will be easier for them to look good in the third and fourth quarter.  If the digital part of the business split off from the brick and mortar part, it would look great..I’m not saying that will happen, though.  Oh, and toys are selling well…  😉

Forbes article

This post by Bufo Calvin originally appeared in the I Love My Kindle blog.

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