Best Buy: A Classic Value Trap

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The following video is part of our "Motley Fool Conversations" series, in which analyst John Reeves and advisor David Meier discuss topics across the investing world.

Best Buy has been in the news a lot lately. Sadly, it's been for all the wrong reasons. David is not particularly optimistic about the company's long-term prospects. The company offers poor customer service, and yet its prices are actually higher than Amazon.com's. Finally, the company's operating margins have been falling of late, which makes David wonder if Best Buy is a classic value trap.

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At the time this article was published David Meier owns shares of Apple. John Reeves owns shares of Apple. The Motley Fool owns shares of Apple, Amazon.com, Best Buy, and Wal-Mart Stores.Motley Fool newsletter services recommendAmazon.com, Apple, and Wal-Mart Stores. Try any of our Foolish newsletter servicesfree for 30 days. We Fools may not all hold the same opinions, but we all believe thatconsidering a diverse range of insightsmakes us better investors. The Motley Fool has adisclosure policy.

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