How is BestBuy (BBY) Making Money?

BestBuy (BBY) needs more partnerships because it is not making that much money.
For instance, BestBuy recorded an operating income of $335 million and a net income of $244 million for 3rd Quarter 2018. However BestBuy recorded a gross profit of $2.229 billion on revenues of $9.379 billion for the same period.
Beyond that BestBuy reported an operating cash flow of $904 million, an investing cash flow of $127 million, and a free cash flow of $710 million in 3rd Quarter 2018. Thus, BestBuy has a cash rich business.
On the other hand, BestBuy needs to keep more of that cash. The partnerships are important because they could give BestBuy more cash flow without costly expansion.

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Will Best Buy Survive the Retail Apocalypse?

Acquiring Best Buy would be a smart and logical move for Amazon.

Best Buy’s 1,026 stores would give Amazon a brick and mortar footprint for pickup and delivery. Those stores would serve as ideal locations for people to see and test Amazon merchandise and get familiar with new Amazon products such as Echo, Amazon TV, Kindle, and Fire. Best Buy could serve as Amazon’s answer to the Apple Store.

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