Best Buy Expands Fire TV Partnership with Amazon Through 2027
Best Buy has expanded its multiyear partnership with Amazon to continue using Fire TV as the exclusive TV software for Insignia televisions. This deal, which started in 2018 and has led to over 100 Fire TV-powered television models being launched, will keep Fire TV on Insignia TVs ranging from 24 inches to 85 inches. The latest user interface of Fire TV is already integrated across most Insignia models, including Alexa+.
The partnership also includes the integration of Amazon Ads' programmatic advertising technology into Best Buy Ads starting in February 2027. This will give brands access to Fire TV advertising inventory on new and existing Insignia TVs through Best Buy Ads. The expanded agreement aims to increase connected TV advertising opportunities for advertisers using Amazon Ads.
Best Buy's quarterly earnings report in August showed the company beating expectations with adjusted earnings of $1.47 per share and revenue rising 3.6% year over year to $9.78 billion. As a result, Best Buy raised its fiscal 2027 adjusted earnings outlook to $6.70 to $6.90 per share from $6.30 to $6.60.
Analysts remain cautious about the stock, with a Hold consensus rating and an average price forecast of $85.87. A recent downgrade by DA Davidson to Neutral is also worth noting.