Channel: DailyFinance.com
Viewing all articles
Browse latest Browse all 9760

Is Barnes & Noble's Nook Spinoff A Win For the Apple iPad?


Filed under:

Shares of seemingly struggling bookseller Barnes & Noble have been on fire so far in 2014, surging well over 50% year to date and leaving broad market indices such as the S&P 500 in its dust.

BKS Chart

BKS data by YCharts

Fueling that run all the more, Barnes & Noble stock surged once again recently in the wake of Barnes & Nobles report for its fiscal year 2014 annual performance. More to the point, Barnes & Noble announced during the earnings report that it would be divesting its long-struggling Nook e-reader and tablet division, leaving investors struggling to grasp what this move means for Barnes & Noble's digital future as well as the competitive landscape for other hallmark tablets like Apple's iPad.

A win or loss for Barnes & Noble?
Some Barnes & Noble shareholders have argued for some time now that this move will unlock significant shareholder value since it will both enable the Nook management team to focus on competing against the likes of Apple's iPad, while also helping the market recognize the true value of Barnes & Noble's surprisingly robust brick and mortar retail business.

From an investors' perspective, this is absolutely the right move. The Nook lost its toe-hold in the tablet market some time ago as powerhouse tablets like Apple's iPad and others control the bulk of shipments in developed markets like the United States. The company may not be saying it, but this move opens up the door for Barnes & Noble to let the Nook potentially die a quieter death at the hands of Apple's iPad. In the video below, tech and telecom specialist Andrew Tonner looks at Barnes & Nobles recent move in greater detail.

This little-known company is set to soar with the release of Apple's iWatch
Apple recently recruited a secret-development "dream team" to guarantee its newest smart device was kept hidden from the public for as long as possible. But the secret is out, and some early viewers are claiming its everyday impact could trump the iPod, iPhone, and the iPad. In fact, ABI Research predicts 485 million of this type of device will be sold per year. But one small company makes Apple's gadget possible. And its stock price has nearly unlimited room to run for early in-the-know investors. To be one of them, and see Apple's newest smart gizmo, just click here!

The article Is Barnes & Noble's Nook Spinoff A Win For the Apple iPad? originally appeared on Fool.com.

Andrew Tonner owns shares of Apple. The Motley Fool recommends Apple. The Motley Fool owns shares of Apple and Barnes & Noble. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.

Copyright © 1995 - 2014 The Motley Fool, LLC. All rights reserved. The Motley Fool has a disclosure policy.


Read | Permalink | Email this | Linking Blogs | Comments

Viewing all articles
Browse latest Browse all 9760