Political tensions on a global scale are rapidly impacting Seattle-based Starbucks Corporation, resulting in an approximate $11 billion decline in the company’s overall value, representing a significant 9.4% decrease.
Within a short span of 19 days, starting from its November 16 Red Cup Day promotion, Starbucks shares have plunged by 8.96%, translating to the staggering loss, attributed to reports of dwindling sales and a lackluster response to the holiday season’s offerings.
The turmoil surrounding the Seattle, Washington-based chain originates from deep-seated boycotts stemming from sensitive geopolitical issues. These tensions intensified following a tweet from Starbucks Workers United, a union representing many of its baristas, expressing solidarity with Palestinians. An industry analyst remarked, “Amid an ongoing boycott due to the Israeli occupation’s aggression against the Gaza strip, the undercurrent of discontent signals a challenging brew for the company’s future.”
Starbucks experienced a downturn in its stocks for 12 consecutive sessions, marking the longest downward streak since its public debut in 1992. Presently, the stock hovers around $95.80 per share, a considerable decline from its yearly high of $115.
Commenting on the situation, an industry analyst highlighted the challenges faced by the coffee giant, stating, “Amid an ongoing boycott due to the Israeli occupation’s aggression against the Gaza strip, the undercurrent of discontent signals a challenging brew for the company’s future.”
The consistent decline in Starbucks stocks over a dozen consecutive market sessions stands as a record since the company’s initiation in the public market in 1992. Currently, the stock stands at around $95.80 per share, markedly lower than its annual peak of $115.
