- 12:20Netanyahu seeks swift resolution in hostage negotiations with Hamas
- 11:50UN reports 798 deaths near aid sites in Gaza amid escalating tensions
- 11:20Morocco and France strengthen parliamentary ties ahead of inter-parliamentary forum
- 11:20Donald Trump announces important statement on Russia amid growing tensions
- 10:50U.S. imposes 35% tariff on Canadian imports as trade tensions escalate
- 10:20Morocco accelerates desalination and dam projects to secure water by 2030
- 09:50Morocco and EU to strengthen ties with October parliamentary meeting in Rabat
- 09:20EU Parliament confirms Algeria’s inclusion on high-risk terrorism financing list
- 08:50Morocco redefines hospitality at CREMAI 2025 in Marrakech
Follow us on Facebook
Starbucks Faces $11 Billion Plunge Amidst Strikes, Boycotts, and Sales Slump
Starbucks is facing a perfect storm of financial woes, with its stock enduring a record 11-day plunge, wiping out $11 billion in market value. The coffee giant has been battered by sluggish sales, ineffective marketing campaigns, labor unrest, and political backlash.
The recent decline represents the longest losing streak in Starbucks' history, fueling growing unease among investors. Shares have tumbled over 9% amid three straight weeks of falling sales attributed to inflation dampening customer spending power in the critical US market.
The famed Red Cup Day promotion also flopped, further eroding confidence after initial optimism from better-than-expected quarterly earnings. But optimism soon curdled into doubts regarding sales momentum after credit card data signaled slowing trends.
“Investors are worried about the potential for disappointing comparable sales,” said Wedbush Securities analyst Nick Setyan, citing fears over recent cooling patterns.
Simmering labor tensions have also boiled over, with strikes impacting around 200 locations during the Red Cup Day action. This disruption compounded existing boycott calls protesting former CEO Howard Schultz’s outspoken support for Israeli government policies opposed by some progressive groups.
Simmering labor tensions have also boiled over, with strikes impacting around 200 locations during the Red Cup Day action. This disruption compounded existing boycott calls protesting former CEO Howard Schultz’s outspoken support for Israeli government policies opposed by some progressive groups.
The confluence of stagnating sales, ineffective marketing, employee unrest and ideological backlash has conspired to undermine Starbucks, reflected in its historic stock slump and eroded billions in market value. For Starbucks’ leadership, calming this perfect storm will prove critical to stabilizing its battered share price.