Amazon is unleashing a new service that should terrify Best Buy

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That drop may reflect investor worries that Amazon could potentially compete with Best Buy's in-home handyman service, which has been a cash cow for the company. Best Buy's spokesman declined to comment on the reviews.

The service is now only available in Seattle, Portland, San Francisco, San Diego, Los Angeles, Orange County and San Jose, CA.

The service is focused on helping consumers build a smart home, using devices like the Ring Video Doorbell, Philips Hue light bulbs, eero's mesh Wi-Fi network or Amazon's own Fire TV.

Shares of Best Buy plunged in value immediately after the news broke Monday, shaving about $1 billion off the retail electronics company's market cap.

Shares of Best Buy were down 3.7 percent in pre-market trading on Monday in the wake of a report that Amazon is forming its own "Geek Squad" to support its sales of electronics.

The new offering goes beyond Amazon's existing marketplace for "home services", which is now a few years old. According to Recode, the ecommerce giant is looking to hire in-house field technicians in cities like Tampa, Miami, Orlando, Houston, Dallas, Las Vegas, and Hoboken, New Jersey.

"Our experts are Amazon employees, not contractors", the company explains on its 'Home Services' site. "They have been handpicked for their technology experience, passion for customer service, and strong track record", Amazon boasts.

Geek Squad, with its mobile staff of technicians, was seen as an area that would be harder for Amazon to disrupt.

Amazon describes the smart home consultation as a three-step process.

Best Buy has had smart home services for a while now, with a similar free consultation service and installations services priced similarly.

While other brick-and-mortar retailers have felt the pinch from online competition, Best Buy's stock has soared in recent years, in part thanks to Geek Squad's ability to bridge the gap between retail stores, e-commerce, and in-home consumer education.

Here's another stock idea to consider. Some are already reaching 265 miles on a single charge.

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