Best Buy, Amazon Deepen Fire TV Alliance

Best Buy Co. Inc. (NYSE:BBY) said Wednesday it expanded its multiyear Fire TV partnership with Amazon.com Inc. (NASDAQ:AMZN). The deal will keep Fire TV as the exclusive TV software for Insignia televisions. It will also expand connected TV advertising opportunities through Best Buy Ads using Amazon Ads technology. Insignia is Best Buy’s exclusive in-house brand. Best Buy, Amazon Expand Fire TV Deal Insignia TVs ranging from 24 inches to 85 inches will continue to feature Fire TV. The lineup includes Fire TV’s latest user interface, which launched earlier this year. Alexa+ is also integrated across most models. Best Buy will remain the exclusive retailer for the TVs in its stores and on Amazon.com, where the products are sold by Best Buy. Starting in February 2027, Best Buy Ads will use Amazon Ads’ programmatic advertising technology. The platform includes AI-powered tools that help brands plan, activate, optimize and measure campaigns. Best Buy Ads will also give brands access to Fire TV advertising inventory across new and existing Insignia TVs. The expanded agreement builds on a partnership that began in 2018. Since then, the companies have launched more than 100 Fire TV-powered television models and reached tens of millions of households. The TVs are sold through the Best Buy app, BestBuy.com, Best Buy stores and Amazon.com. Best Buy Raises Annual Outlook In August, Best Buy reported second-quarter adjusted earnings of $1.47 per share, beating the $1.38 consensus estimate. Revenue rose 3.6% year over year to $9.78 billion, topping expectations of $9.59 billion. Best Buy also raised its fiscal 2027 adjusted earnings outlook to $6.70 to $6.90 per share from $6.30 to $6.60. The revised range was above the $6.58 consensus estimate. The company increased its annual sales forecast to $42.3 billion to $42.8 billion from $41.2 billion to $42.1 billion. Analysts expect sales of $42.06 billion. See More: Top Value Stocks Analysts Remain Cautious BBY carries a Hold consensus rating, with an average price forecast of $85.87. Price forecasts range from $71 to $95 across 30 analysts. DA Davidson downgraded BBY to Neutral on Sept. 8 and maintained a $95 price forecast. UBS kept a Neutral rating on Aug. 28 and raised its price forecast to $90. Barclays maintained an Equal-Weight rating and lifted its price forecast to $85 on the same day. ETF Exposure BBY has a 2.84% weighting in the Pacer S&P 500 Quality FCF High Dividend ETF (NASDAQ:QFHD). It also has a 2.24% weighting in both the ALPS Sector Dividend Dogs ETF (NYSE:SDOG) and the Alpha Architect US Quantitative Value ETF (NASDAQ:QVAL). As a result, sizable inflows or outflows from these funds can contribute to passive buying or selling of BBY shares. BBY Price Action BBY Price Action: Best Buy shares were trading at $95.00 at the time of publication on Wednesday. The stock is trading near its 52-week high of $95.85, according to Benzinga Pro data. Photo via Shutterstock