It’s bad news for Starbucks (NASDAQ:SBUX) as the coffee giant found itself on the bad end of a new analyst note. Word out of M Science says sales are off, and that’s got investors reconsidering their stances as well. Starbucks is down fractionally in Friday afternoon’s trading, and there may be worse to come.
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The word out of M Science noted that sales are dropping. That’s not the only thing, either; the share price has also dropped every day for the last two weeks. But as for Starbucks’ sales, the recent troubles outside the sales counter—like various boycotts and an array of labor troubles—are starting to make shoppers question whether they’re particularly interested in that pricey latte or its equivalent.
In fact, one of the latest problems for Starbucks seems connected to its social media and its takes on the Israel-Hamas War. The social media posts therein are fueling boycotts, reports note, and they’re catching on with increasing speed. Over 7,000 TikTok videos alone featured “#boycottstarbucks” in some way.
Starbucks Isn’t Taking This Lying Down
Give Starbucks credit; it’s not just rolling over and taking things as they come. No, Starbucks has responded with recent half-off drink specials, as well as some new products. Four new holiday-themed cold foams emerged, featuring seasonally spot-on flavors like peppermint chocolate and sugar cookie. However, even here, there were issues, as the Toasted White Chocolate Mocha wasn’t brought back and, once again, social media turned into a river of flame as angry patrons expressed their dissatisfaction at losing a favorite drink.
What is a Good Price for Starbucks Stock?
Turning to Wall Street, analysts have a Moderate Buy consensus rating on SBUX stock based on seven Buys and 12 Holds assigned in the past three months, as indicated by the graphic below. After a 3.76% loss in its share price over the past year, the average SBUX price target of $111.33 per share implies 12.28% upside potential.
