Starbucks Stock Drops 9% on Slowing Sales Growth, China Worries
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Starbucks' stock price has fallen sharply recently, declining about 9% and losing around $11 billion in market value. This is due to lower-than-expected sales growth.
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Foot traffic and same-store sales growth have slowed more than anticipated in the October-December quarter, especially around promotional events like Red Cup Day.
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Analysts don't believe boycott calls on social media over various issues are having a significant financial impact or driving the stock decline.
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Ongoing unionization efforts may be negatively affecting investor sentiment about Starbucks' reinvention plan and future earnings potential.
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Issues in China like a weakening economy also contribute to investors' worries, as China is a major market for Starbucks.