Starbucks stock increases by 12 in the past month Is it time to wake up and smell the coffee
While Starbucks (NASDAQ: SBUX) has consistently emphasized its neutrality and commitment to peace amidst the ongoing Israeli attacks on Gaza and the West Bank, the company has faced significant backlash from a related boycott. The repercussions of this pressure were glaringly evident in the aftermath of the coffee chain’s recent earnings report, with SBUX shares plummeting from around $88 to approximately $74 in just one day of trading.
Although it remains uncertain whether the boycott has subsided – as it was never officially announced, unlike in the cases of companies like McDonald’s (NYSE: MCD), PUMA (ETR: PUM), and Chevron (NYSE: CVX) – the intensity of the pressure appears to have eased somewhat.
Despite enduring significant losses in the stock market since the beginning of 2024, SBUX has embarked on a notable path to recovery, witnessing a 12.31% increase in the last 30 days, with Starbucks’ current price standing at $81.88.
The stock’s resurgence has been particularly pronounced in the past week of trading, with the company experiencing a 5.20% rise in the stock market. Nevertheless, Starbucks must sustain this upward trajectory to offset its overall decline in 2024, which currently stands at 12.59%.
In a potentially risky move, Starbucks has reportedly refiled some of its trademarks in Russia by June 2024, a strategic maneuver that could either bolster its long-term recovery or invite further backlash from disgruntled consumers. The decision to potentially re-enter the Russian market comes amidst escalating tensions in Ukraine, marked by renewed Russian offensives near Kharkiv and Western acceptance of the use of long-range weaponry within the invading country’s borders.
Starbucks had previously exited the Russian market and sold its business in 2022 following the invasion of Ukraine.
