The big box retailer will sell smart TVs that feature Fire TV
Shares of Best Buy Co Inc (NYSE:BBY) are trading higher after the big box retailer said it will begin selling TVs featuring Amazon's (AMZN) Fire TV. In reaction to the multi-year partnership, BBY stock is up 3.3% at $75.18, at last check.
BBY has gained almost 50% over the past 12 months, and most recently touched a record high of $78.59 on Jan. 23. Since then, however, the stock has been in a channel of lower highs, but has found a foothold near $66.
Analysts, meanwhile, have been wary of the retail stock, as 12 out of the 16 covering brokerage firms sport "hold" or worse recommendations. Plus, the security's 12-month price target sits just above at $75.62 -- in line with current levels.
Skepticism is also being seen among traders, too. Data from the International Securities Exchange (ISE), Chicago Board Options Exchange (CBOE), and NASDAQ OMX PHLX (PHLX) shows Best Buy stock with a 50-day put/call volume ratio of 1.23, ranking in the 74th annual percentile. This indicates puts have been bought to open over calls at a faster-than-usual clip during the past 10 weeks.
Plus, short interest on BBY stock rose 17% during the past two reporting periods, and now represents 12.5% of the stock's total available float. At Best Buy stock's average daily trading volume, it would take over eight days for the shorts to cover their bearish bets.