NEW YORK (Daily Point) — Seattle-based Starbucks Corporation is grappling with a substantial loss of approximately $12 billion in market value amid escalating global political tensions and calls for a boycott.
The setback unfolded after the November 16 Red Cup Day promotion, with Starbucks shares plummeting by 8.96% over a 19-day period, as reported by PTI.
Analysts attribute the decline to sluggish sales and a lukewarm response to the holiday season’s offerings. The market cap of Starbucks has seen a staggering drop of $12 billion in the past month, triggered by a walkout on Red Cup Day and a public disagreement over the Israel-Hamas conflict with the baristas’ union.
The continuous decline in stock prices, spanning 12 sessions, has brought Starbucks’ shares to approximately $95.80 each, down from their yearly high of $115. The company is facing challenges linked to a mounting boycott related to Israeli-Gaza tensions, contributing to an uncertain future.
Boycotts against Starbucks, part of a broader movement targeting global brands for alleged support for Israel, have prompted the company’s Egypt branch to implement cost-cutting measures, including laying off workers in late November. The impact of the boycott is putting considerable economic strain on Starbucks in Egypt, necessitating strategic responses to address the ongoing challenges.
