Starbucks lost $11 billion as a result of boycotts and weak sales

 Starbucks lost $11 billion as a result of boycotts and weak sales

Starbucks' shares have dropped 8.96 percent in 19 calendar days since the Red Cup Day promotion on November 16, valued at around US$11 billion, as a result of analyst projections indicating fewer sales and a delayed reaction to the holidays. equal to a loss of one dollar. Seasonal offering.

Starbucks Corporation, situated in Seattle, is seeing a sharp increase in global political unrest as seen by the company's $11 billion valuation loss, which has erased 9.4% of its overall worth.

Starbucks' shares have dropped 8.96 percent in 19 calendar days since the Red Cup Day promotion on November 16, valued at around US$11 billion, as a result of analyst projections indicating fewer sales and a delayed reaction to the holidays. equal to a loss of one dollar. Seasonal offering.

The firm, which is headquartered in Seattle, Washington, has strong roots in the boycott, which involves touchy geopolitical concerns. The company got into trouble when Starbucks Workers United, the union that represents many of its baristas, tweeted something negative about Palestinians. shows support for.

A business expert predicted that the wave of unhappiness, along with the continued boycotts brought on by the aggressiveness of the Israeli occupation against the Gaza Strip, would be difficult for the firm to weather in the long run.

The stock of Starbucks has been down for the last 12 trading days, the longest run since the firm went public in 1992. The stock is presently selling at about USD95.80 per share, down from its annual high of USD115. However, it is.

Although the corporation has denied any wrongdoing in these situations, it is difficult to preserve its image as a brand in the face of contentious international challenges.

Starbucks CEO Lakshman Narasimhan expressed optimism in a recent discussion with investors over the company's capacity to connect consumers across a variety of channels and in spite of macroeconomic problems and shifting consumer behavior.

Due to their support of Israel, a number of international businesses are being boycotted, including Starbucks. According to reports, Starbucks in Egypt let off employees in late November as a result of the boycott's financial impact, which forced them to reduce spending.