{"id":41236,"date":"2025-07-02T11:36:45","date_gmt":"2025-07-02T11:36:45","guid":{"rendered":"https:\/\/quickassetsmarket.com\/index.php\/2025\/07\/02\/starbucks-stock-price-analysis-as-major-risks-remain\/"},"modified":"2025-07-02T11:36:45","modified_gmt":"2025-07-02T11:36:45","slug":"starbucks-stock-price-analysis-as-major-risks-remain","status":"publish","type":"post","link":"https:\/\/quickassetsmarket.com\/index.php\/2025\/07\/02\/starbucks-stock-price-analysis-as-major-risks-remain\/","title":{"rendered":"Starbucks stock price analysis as major risks remain"},"content":{"rendered":"
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Starbucks stock price remains under pressure this year as concerns about its growth trajectory and competition continue. SBUX has dropped to $91.6, down by 21.50% from its highest level this year, meaning that it is in a deep bear market. <\/p>\n

Competition is a major risk<\/h2>\n

Starbucks stock price has crashed as investors remain concerned about its business and the rising competition. <\/p>\n

While its position in the US is solid, the biggest risk is in China, where new companies are gaining market share. <\/p>\n

Starbucks has over 7,590 stores in China, while Luckin Coffee\u2019s franchise model has seen it get to over 10,000 stores in the country. Similarly, Cotti Cofee, a company that was started a few years ago, has already grown into 6,505 stores in the country. <\/p>\n

The rising competition from local brands is a major threat for the company because of its market share and margins. Most of these competitors have thrived because of their prices, which are often significantly cheaper than Starbucks.<\/p>\n

Therefore, in a recent report, Caixin wrote that Starbucks officials were considering exiting the Chinese market<\/a>. While Starbucks has denied the report, such a move cannot be ruled out in the future.<\/p>\n

Chinese coffee companies are also a threat in other countries, where they want to replicate the Chinese model. For example, Luckin Coffee launched two restaurants<\/a> in New York this week, and the reception was relatively strong. <\/p>\n

The success of the New York business will likely lead to more store launches in other states. It will also push Luckin to experiment in other cities where Starbucks has a major market share. <\/p>\n

Slow growth to persist<\/h2>\n

The most recent results showed that Starbucks’ business continued its slowdown in the second quarter. Its global comparable store sales dropped by 1%.<\/p>\n

This decline was mostly because of its American business, where its comparable sales fell by 1% and offset by the international division that grew by 2%.<\/p>\n

The North America revenue rose by 1% to $6.4 billion, while its operating margin crashed by 640 basis points to 11.6%. <\/p>\n

Store count in the international market rose by 6% to 22,162, while its net revenue jumped to over $1.8 billion. <\/p>\n

Starbucks withdrew its forward guidance. However, analysts expect that the company\u2019s growth will remain under pressure this year. The average estimate is that its revenue will rise by 2% in Q3 to $9.3 billion, while the annual one will hit $36.9 billion.<\/p>\n

Starbucks stock price analysis<\/h2>\n
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SBUX stock chart | Source: TradingView<\/a><\/p>\n

The daily chart shows that the SBUX share price has remained under pressure in the past few days. It is hovering slightly below the 50% Fibonacci Retracement level at $93. <\/p>\n

The stock has formed a bullish flag pattern, a popular bullish continuation sign. It has also moved slightly above the 50-day and 200-day Exponential Moving Averages (EMA).<\/p>\n

Therefore, the Starbucks stock price will likely have a bullish breakout, with the next point to watch being at $100. <\/p>\n

The post Starbucks stock price analysis as major risks remain<\/a> appeared first on Invezz<\/a><\/p>\n

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Starbucks stock price remains under pressure this year as concerns about its growth trajectory and competition continue. SBUX has dropped to $91.6, down by 21.50% from its highest level this year, meaning that it is in a deep bear market.  Competition is a major risk Starbucks stock price has crashed as investors remain concerned about <\/p>\n","protected":false},"author":1,"featured_media":41237,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[4],"tags":[],"class_list":{"0":"post-41236","1":"post","2":"type-post","3":"status-publish","4":"format-standard","5":"has-post-thumbnail","7":"category-world"},"_links":{"self":[{"href":"https:\/\/quickassetsmarket.com\/index.php\/wp-json\/wp\/v2\/posts\/41236","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/quickassetsmarket.com\/index.php\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/quickassetsmarket.com\/index.php\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/quickassetsmarket.com\/index.php\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/quickassetsmarket.com\/index.php\/wp-json\/wp\/v2\/comments?post=41236"}],"version-history":[{"count":0,"href":"https:\/\/quickassetsmarket.com\/index.php\/wp-json\/wp\/v2\/posts\/41236\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/quickassetsmarket.com\/index.php\/wp-json\/wp\/v2\/media\/41237"}],"wp:attachment":[{"href":"https:\/\/quickassetsmarket.com\/index.php\/wp-json\/wp\/v2\/media?parent=41236"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/quickassetsmarket.com\/index.php\/wp-json\/wp\/v2\/categories?post=41236"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/quickassetsmarket.com\/index.php\/wp-json\/wp\/v2\/tags?post=41236"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}