Tuesday, February 5, 2013

Investors Aren’t Shelving Barnes & Noble; Stock Up 7%

Getty ImagesBrain food

Book retailer Barnes & Noble (BKS) is riding high this afternoon and we�re still looking to get to the bottom of exactly why.

We�re betting that it�s probably not related to the company�s announcement at the end of last month that it plans to close about 20 stores a year for the next 10 years, cutting more than a third of its physical bricks-and-mortar shops.

In more bad news, Barnes & Noble also reported weak holiday sales as it faced pressure from competitors like Amazon (AMZN) and e-readers, but it showed promise in the digital space, with sales rising more than 13% during the period.

It could be today’s rise is related to the release of its latest Nook e-reader yesterday alongside news that investor Daniel Tisch raised his passive stake in the company to 8.1% as of Dec. 31, up from 5.1% on June 30.

Shares were up close to 7% in afternoon trading on Tuesday; Amazon stock was up 2.5%.

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