On the surface, this should have been a good idea for coffee giant Starbucks (SBUX). After all, Swifties helped turn around movie theaters with the Eras Tour not so long ago. But a new promotion between Taylor Swift and Starbucks did not have much impact with shareholders. Starbucks shares were actually up fractionally in Friday afternoon’s trading.
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Taylor Swift’s new album came out today, and “The Life of a Showgirl” is prompting excitement from Swifties all over. Meanwhile, Starbucks is taking advantage of this development as well with a “global listening party,” complete with multiple playlists, some special events, and even free drinks. In fact, Starbucks gave out free drinks to the first 113,000 Starbucks Rewards members who spotted a special Easter egg in Starbucks social media posts.
This is not the first time Swift and Starbucks have worked together. The duo got together for the release of Red (Taylor’s Version) by bringing out an officially-branded drink, Taylor’s Latte, which is a caramel nonfat that is apparently Swift’s drink of choice. There is, however, no word on whether the mint majesty with two honeys will be called Charlie’s Tea.
Impact on Home Prices
In a strange twist, it seems the large-scale closure of Starbucks stores is having an impact on home prices. Real estate expert Todd Drowlette revealed that a closed Starbucks can actually hurt home prices in an area, though by how much is somewhat unclear.
Drowlette noted, “People consider a neighborhood’s total package. Having amenities in close distance adds to the desirability. Everyone wants convenience today. Whole Foods still brings with the brand a feeling of an upscale community because people know the type of neighborhoods they are located in.” So the impact may be negligible, especially if it is isolated. But if it is the start of a trend then there could be a larger problem afoot.
Is Starbucks Stock a Good Buy?
Turning to Wall Street, analysts have a Moderate Buy consensus rating on SBUX stock based on 13 Buys, seven Holds and two Sells assigned in the past three months, as indicated by the graphic below. After a 10.21% loss in its share price over the past year, the average SBUX price target of $101.45 per share implies 16.97% upside potential.
