Best Buy stock tumbles 15% despite upbeat quarterly figures

Best Buy (BBY.US) stock plunged more than 15.0% during today's session, despite the fact that the electronics retailer posted solid quarterly figures. Company earned  $2.08 per share, above analysts' expectations of $1.91 per share. Revenue of $11.91 billion also beat market projections of $11.56 billion, however Best Buy forecast  weaker same-store sales over the holiday period as it faces possible product shortages. For the holiday quarter, the company predicted sales of $16.4 billion to $16.9 billion. The midpoint of $16.65 billion is below Wall Street's target of $16.72 billion for the fiscal fourth quarter, according to FactSet. In the year-earlier period, Best Buy generated sales of $16.94 billion.

Best Buy (BBY.US) stock launched today's session with a massive bearish price gap and is currently testing 200 SMA (red line). Should break lower occur, the next target for sellers is located at $106.60 level which is marked with 38.2% Fibonacci retracement of the upward wave launched back in March 2020. On the other hand, if buyers manage to halt declines here, then another u[ward impulse towards resistance at $120.00 may be launched. Source: xStation5