Starbucks Stock is Crashing! Opportunity or Dead End? | SBUX Stock Analysis

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  • เผยแพร่เมื่อ 4 มิ.ย. 2024
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    Starbucks just released their quarterly results, and they are not favorable. Consequently, after the publication of these results, Starbucks' stock plummeted by approximately 15% in a single day. Is this merely a short-term setback? As long-term investors, can we capitalize on this price drop and acquire shares in a great company at a discounted price?
    🗃 Content:
    0:00 Starbucks is Crashing
    1:09 Past Results
    1:58 Investors
    3:09 Financial Health
    4:42 Growth
    5:30 Dividends
    6:26 Starbucks Valuation
    8:24 Is SBUX a Buy?
    #sbux #Starbucksstock #StockAnalysis
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    DISCLAIMER:
    I am not a financial adviser. This video is for educational and entertainment purposes only. Seek professional help before making any investment decision.​

ความคิดเห็น • 48

  • @MrKenny368
    @MrKenny368 24 วันที่ผ่านมา +19

    I personally never expect large american brands to fall close to their "intrinsic" values let alone have a margin of safety. They attract too many investors even if they perform badly, because of how ingrained they are in our minds. The only one I can think of, that sometimes reaches those valuations, is Meta. And that is usually because of combination of bad pr, some lawsuit, and Mark making an announcement. So even thou SBUX is still kind of expensive, I will use the dip to slowly dca a position. I just don't see a business that sells sugar and caffeine and has logo that is recognizable everywhere to perform badly over the long term. I expect them to underperform while inflation is high and maybe one year after it levels off. So they might have some slow years ahead of them.

    • @mididoddi
      @mididoddi 24 วันที่ผ่านมา

      Very insightful

  • @karsinds
    @karsinds 24 วันที่ผ่านมา +9

    strong brand, excellent business, great value, bargain price. Some near-term headwinds - already priced in - and huge long-term growth. This is my opinion.

    • @Pizza-gb1ch
      @Pizza-gb1ch 24 วันที่ผ่านมา +1

      Upon what do u base your assessment of price?

    • @steveshaneyfelt7150
      @steveshaneyfelt7150 16 วันที่ผ่านมา +1

      I don’t expect everyone to agree on this subject but in the end the earnings will reveal the correct answer. The last report has spoken. Waiting on the next one…

  • @garrisonsimon
    @garrisonsimon 19 วันที่ผ่านมา +4

    You use conservative numbers and apply a 30% margin of safety. Your price targets are very unrealistic.

  • @billyjohnson9166
    @billyjohnson9166 24 วันที่ผ่านมา +4

    Great video I sold @ 79.50 I had a big position in SBUX.

  • @benjamind3448
    @benjamind3448 24 วันที่ผ่านมา

    Hi. What do you think about BLNK?

  • @mididoddi
    @mididoddi 24 วันที่ผ่านมา +2

    In the last few years, there were two occasions during which SBUX price was very low. During Mar. 2020 and Apr 2022. In both these occasions, it bounced back nicely. What I am hearing as some of the problems of SBUX are: 1) throughput time to deliver the drink (Chipotle & Chick-Fil-A are extremely good at this) and 2) their inability to get the food part right. SBUX has a great brand value, which should work in its favor. I found the current price attractive, and therefore I took a very small position in this. I don't spend anymore time on it. I just wait and watch. Unlike others, I want the price to go down significantly. Even if it goes down 50% it doesn't bother me. It is just an opportunity for me to buy more. To put it simply - it is at a price at which it doesn't bother me which way the stock goes. And I generally like these kind of prices.

  • @user-qp9so2zo1z
    @user-qp9so2zo1z 17 วันที่ผ่านมา +2

    People love the brand. There’s no bigger name in coffee. They’re only expanding, a lot as 20k more stores opening within the next few years. The same stock move happened in 2022 and recovered, and of course this will be a learning experience. Howard shultz is still the biggest shareholder and wont let this fail

  • @rubenschipper5511
    @rubenschipper5511 24 วันที่ผ่านมา +2

    Really interesting. I did an dcf to but came to totally different prices with the same growth rates. What did you do differently? No terminals? What's the discountrate you used?

    • @BaldInvestor
      @BaldInvestor  23 วันที่ผ่านมา +1

      Thank you. I use a 10% discount rate and a 2% perpetual growth. I also take into the equation the debt and cash positions. I hope that helps.

  • @franklindasilva7295
    @franklindasilva7295 24 วันที่ผ่านมา +3

    If u belivie that starbucks is a good company u buy and hold. U should never sit out and wait for the price to drop more than 50% thats some fairytail shit. U Will miss the window to buy

  • @druvaciam5407
    @druvaciam5407 23 วันที่ผ่านมา +2

    I agree, still overvalued, $CVS is better buy after recent drop.

  • @cofsin1
    @cofsin1 24 วันที่ผ่านมา +3

    Great job, but don't you think the uncertainty about a potential Starbucks Union should be one more important consideration?

    • @parkerdavis7132
      @parkerdavis7132 19 วันที่ผ่านมา +1

      Oh absolutely; It's clear that investors are on the fence over this issue. With Starbucks now bargaining with the union, I think some of these fears will be slowly eliminated, but the key word here is slowly.

  • @dannijohansen7508
    @dannijohansen7508 24 วันที่ผ่านมา +3

    I think you should also be aware that Starbucks has expanded significantly in the Chinese market, with many stores across the country. This is something investors should take into consideration, especially if the USA were to engage in a trade war with China or other unforeseen events were to occur.

    • @BaldInvestor
      @BaldInvestor  24 วันที่ผ่านมา

      That is an interesting point. Thanks for sharing.

    • @dannijohansen7508
      @dannijohansen7508 24 วันที่ผ่านมา

      @@BaldInvestor thank you for your great videos

  • @ivanlam1304
    @ivanlam1304 22 วันที่ผ่านมา +1

    You didn't mention the quality of Starbucks's management, are they being realistic about their business? In UK Starbucks stores are refurbished at considerable cost and they end up with less seating, why?

  • @user-bt9cm7ze4c
    @user-bt9cm7ze4c 18 วันที่ผ่านมา +1

    Workers and moving out of big cities. Office buildings have tons of vacancies. Not a good trend.

  • @nonexistent5030
    @nonexistent5030 24 วันที่ผ่านมา +2

    I think this video isn't appreciating Starbucks's accounting. When they invest in growing their business by building additional stores to expand their global footprint that gets treated as CapEx, not "investment" on their cash flow statement, so realistically their free cash flow is higher than stated. Additionally, it looks like you aren't respecting their real estate holdings and other valuable assets on their balance sheet in your DCF analysis. But definitely tying in a margin of safety by analyzing the business in this way!

  • @foodguy3435
    @foodguy3435 24 วันที่ผ่านมา +1

    Id be patient for the next few months

  • @steveshaneyfelt7150
    @steveshaneyfelt7150 23 วันที่ผ่านมา +1

    You r not conservative enough. Massive competition across USA with great pricing and offering. They are facing headwinds with no place to go. Perfect storm brewing.

  • @Hazel66781
    @Hazel66781 24 วันที่ผ่านมา +2

    Why invest in SBUX when you can do a lot better in other stocks.

    • @Viv8ldi
      @Viv8ldi 16 วันที่ผ่านมา

      Examples?

  • @shallow33
    @shallow33 24 วันที่ผ่านมา

    The growing competition is the main challenge. Their main markets for growth are primary tea drinking cultures in Asia, while in US and Europe McDonald's is expanding with drinks only focused stores.

    • @Viv8ldi
      @Viv8ldi 16 วันที่ผ่านมา

      Omg no one cares sbout mcdonalds here

  • @teaspoon966
    @teaspoon966 21 วันที่ผ่านมา

    Do NKE please! :-)

    • @BaldInvestor
      @BaldInvestor  21 วันที่ผ่านมา +1

      It is on my list. 👍 Thanks for the idea.

  • @randya430
    @randya430 24 วันที่ผ่านมา

    I agree with your assessment. I might be interested to look if it were in the upper 30s range

  • @viktorkatona7521
    @viktorkatona7521 24 วันที่ผ่านมา +3

    Great company, but not a good investment opportunity. Fully agree. Obivously, the question is what these superinvestors see that we dont…:-)

  • @tommytinkler1708
    @tommytinkler1708 24 วันที่ผ่านมา +2

    Share price done nothing for years and now intense competition it is all downhill for now for Starbucks. Would want it in the 50s before taking a look. Dividend is rubbish anyway.

    • @chloratum
      @chloratum 24 วันที่ผ่านมา

      Yeah, the moat is almost zero.

  • @TheRustyLM
    @TheRustyLM 24 วันที่ผ่านมา +1

    Love your channel. 🤓👍
    But I do NOT love Starbucks.

  • @Fibo-xd8hf
    @Fibo-xd8hf 24 วันที่ผ่านมา

    that what happens when they dip nose in politics

    • @melon.
      @melon. 24 วันที่ผ่านมา +1

      you're being lied to.

  • @bpolat
    @bpolat 24 วันที่ผ่านมา

    still overvalued