Best Buy May Be Down but Earnings Support These 3 Holdings

Building on the comments we mined from HP’s HPQ earnings and conference call, we see further support for the PC upgrade cycle stemming from Best Buy’s BBY earnings conference call comments.

That event also had favorable items for smartphone and TV volumes as well as Apple’s AAPL Mac business prospects. Those support the Portfolio’s positions in not only Qualcomm QCOM shares but also Universal Display OLED and Apple shares.

For its April quarter, Best Buy’s comp sales fell 0.7% year over year, but on the earnings call management shared it posted 6% comparable sales growth in the combined computing and tablet categories. Management also shared the quarter delivered the company’s first mobile phone comp sales growth in three years. In terms of the coming quarters, Best Buy continues to see the PC market being fueled by replacement demand and the upgrade cycle as Windows 10 support ends this October and AI PC models proliferate.

In terms of Apple and the Mac, Best Buy shared an interesting perspective: “there's millions of Mac customers that are still on older technology and haven't upgraded to the M chip yet…”

That comment makes us even more interested in what Apple will unveil at its WWDC 2025 keynote on June 9.

Best Buy management also touched on other technology upgrade factors, calling out TVs, and we suspect that refers to the expanding array of organic light-emitting diode display models. That would support the comments we shared several weeks back when we discussed quarterly results from LG Display LPL and 2025 organic light emitting diode market expectations from research firm Omdia.

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At the time of publication, TheStreet Pro Portfolio was long AAPL, QCOM and OLED.