Best Buy could have $46B opportunity in healthcare: 4 things to know

Best Buy could generate between $11 billion and $46 billion in revenue from its commercial health business in the long term as it pushes into the healthcare market, according to a Morgan Stanley report cited by Forbes.

Four things to know:

1. Best Buy, which is known as the largest specialty electronics retailer in the U.S., has said a key part of its growth strategy is centered on digital health initiatives. The company has spent roughly $1 billion on acquisitions to expand its healthcare services in the past year, according to Forbes.

2. "We don't think the market fully grasps Best Buy's commitment to health … We believe Best Buy has a durable competitive advantage in senior care, its niche in the healthcare services market," the Morgan Stanley report said, according to Forbes.

3. The Morgan Stanley analysts noted that Best Buy's earnings calls make it clear the company is focused on expanding in healthcare. Best Buy executives have referenced "health" more than 40 times on earnings calls since 2018, compared to only two times before that, according to Forbes.  

4. If Best Buy's revenue from its commercial health business hits the high end of the projected range, it would top the company's current annual sales of about $43 billion, according to Forbes.

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