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.
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.
Very insightful
strong brand, excellent business, great value, bargain price. Some near-term headwinds - already priced in - and huge long-term growth. This is my opinion.
Upon what do u base your assessment of price?
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…
You use conservative numbers and apply a 30% margin of safety. Your price targets are very unrealistic.
Great video I sold @ 79.50 I had a big position in SBUX.
Hi. What do you think about BLNK?
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.
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
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?
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.
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
I agree, still overvalued, $CVS is better buy after recent drop.
Great job, but don't you think the uncertainty about a potential Starbucks Union should be one more important consideration?
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.
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.
That is an interesting point. Thanks for sharing.
@@BaldInvestor thank you for your great videos
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?
Workers and moving out of big cities. Office buildings have tons of vacancies. Not a good trend.
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!
Id be patient for the next few months
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.
Why invest in SBUX when you can do a lot better in other stocks.
Examples?
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.
Omg no one cares sbout mcdonalds here
Do NKE please! :-)
It is on my list. 👍 Thanks for the idea.
I agree with your assessment. I might be interested to look if it were in the upper 30s range
Great company, but not a good investment opportunity. Fully agree. Obivously, the question is what these superinvestors see that we dont…:-)
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.
Yeah, the moat is almost zero.
Love your channel. 🤓👍
But I do NOT love Starbucks.
Why?
that what happens when they dip nose in politics
you're being lied to.
still overvalued
Why?