Starbucks Stock Is Tumbling Wednesday: What's Going On?
Portfolio Pulse from Adam Eckert
Starbucks Corp (NASDAQ:SBUX) shares fell following a Q2 earnings miss, with revenue of $8.6 billion below the expected $9.129 billion and earnings per share at 68 cents versus the 79 cents forecast. Global comparable store sales dropped 4%, with significant declines in China and internationally. Despite a 6% year-over-year increase in active U.S. rewards memberships and opening 364 new stores, analysts have downgraded and lowered price targets for SBUX, citing cautious consumer spending and a slow recovery in China.
May 01, 2024 | 12:43 pm
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Starbucks' Q2 earnings miss and subsequent analyst downgrades and price target reductions reflect negatively on the stock, leading to a 13.3% drop in share price.
The significant drop in Starbucks' share price is directly tied to its Q2 earnings miss and lowered analyst expectations. The reported decline in global comparable store sales, especially in key markets like China, alongside cautious consumer spending, has led to a negative short-term outlook for SBUX. Analyst downgrades and reduced price targets further exacerbate the stock's short-term challenges.
CONFIDENCE 90
IMPORTANCE 95
RELEVANCE 100