#8 - Barnes & Nobles (NYSE:BKS)
Barnes & Nobles (NYSE: BKS) - It’s not that people aren’t reading books. They’re just not as keen on buying them anymore. And when your business model is based on selling real books in a brick-and-mortar environment, things can look rather bleak. That is the situation confronting Barnes & Nobles. Whereas the company once was a bookseller, they now tend to play the role of a hangout space where students can meet to do homework and have coffee. As evidence that the math is not working out, in the second quarter of 2018, the bookstore chainsaw overall sales dip by nearly 8%. Year-over-year, their loss increased from $20.4 million to $30.1 million. Simply put, they are burning cash at an unsustainable base and there is no real path to profitability. The digital book space is already saturated. And although Barnes & Nobles has no business that threatens its market share, if the company can’t turn a profit during a bull market, what are its prospects should the economy experience a downturn. The stock is trading around $6.50 per share which is up from its 52-week low, but the bounce is largely due to speculation that the company is open to takeover offers.
About Barnes & Noble
Barnes & Noble, Inc primarily operates as a bookseller in the United States. The company operates through two segments, B&N Retail and NOOK. It sells trade books, including hardcover and paperback titles; mass market paperbacks, such as mystery, romance, science fiction, and other fiction; and children's books, eBooks and other digital content, NOOK and related accessories, bargain books, magazines, gifts, café products and services, educational toys and games, and music and movies.
Read More - Current Price
- $6.49
- Consensus Rating
- N/A
- Ratings Breakdown
- 0 Buy Ratings, 0 Hold Ratings, 0 Sell Ratings.
- Consensus Price Target
- N/A
