Starbucks shares tumbled after the company issued a dismal preview of its fourth-quarter results, revealing a projected 3% decline in revenue and a 7% drop in global comparable sales. While investors had anticipated a challenging quarter, the severity of the miss caught them off guard. Analysts are now closely scrutinizing the new CEO’s turnaround strategy, ‘Back to Starbucks,’ as the company prepares to unveil more details during its earnings call on October 30th.
Starbucks stock took a dive after the company pulled its guidance, but experienced traders see this as a potential buying opportunity. The stock found support around the $94 level, indicating a possible rebound based on investor psychology and market trends. This article explores the reasons behind this support level and the potential for a rally.
Starbucks shares took a hit in after-hours trading on Tuesday after the coffee giant announced disappointing preliminary fourth-quarter results and suspended its guidance for the full fiscal year 2025. The company cited a decline in North American revenues, particularly in the U.S., and a drop in sales in China as key factors behind the weak performance. Despite the challenges, Starbucks has outlined a ‘Back to Starbucks’ plan to regain growth and has increased its dividend.
