Starbucks (NASDAQ: SBUX) has been facing challenges due to its stance on neutrality and peace amidst the Israeli onslaught on Gaza and the West Bank. The company’s efforts to not take sides have led to a boycott, impacting its stock performance significantly.
Following its latest earnings report, SBUX shares plummeted from $88 to $74 in just one day of trading, showcasing the damage caused by the boycott. While it is uncertain if the boycott is still ongoing, the pressure seems to have eased slightly compared to earlier.
Despite the setbacks, SBUX stock has shown a remarkable 30-day recovery, rising by 12.31% and currently standing at $81.88. The recent week of trading saw a 5.20% increase in the stock market, indicating a positive trend for Starbucks.
However, the company still needs to sustain this recovery to overcome its overall 2024 decline of 12.59%. Additionally, Starbucks’ decision to refile trademarks in Russia could either aid in its long-term recovery or lead to further backlash from consumers.
With the ongoing conflict in Ukraine and Russia’s involvement, the timing of Starbucks’ potential return to Russia remains uncertain. The company had previously exited the Russian market in 2022 following the invasion of Ukraine.
Investing in stocks carries risks, and the information provided should not be construed as investment advice. It is important to consider the speculative nature of investing and the potential loss of capital.
