Down over 4% Friday on missed earnings, holding support at the 200MA. Starbucks key sales figure disappoints; shares fall Source-Read More: https://www.msn.com/en-us/money/top...les-figure-disappoints-shares-fall/ar-AAvaUfL Starbucks reported disappointing sales growth in its most recent quarter, and shares of the coffee chain fell in after-hours trading Thursday. Starbucks said sales rose 2 percent at established stores worldwide during its fiscal first quarter, missing the 3 percent growth analysts expected, according to FactSet. It was also below the 3 percent growth the company posted in the same quarter a year ago.
Some just-in-time "news". But first some charts. SBUX/SPY relative strength. SBUX has been underperforming the SPY, and looks like it was due for the downtrend to kick in again. SBUX failed to retake the old uptrend. It "looks" like there's support at 52.50 but the relative strength chart above is saying it's not going to hold. Also look at the supply that's been coming in. Looks like the next trend will be down. https://www.cnbc.com/2018/03/30/california-judge-rules-that-coffee-requires-cancer-warning.html California judge rules that coffee requires cancer warning The Council for Education and Research on Toxics wanted the coffee industry to remove acrylamide from its processing — like potato chip makers did when it sued them years ago. Los Angeles Superior Court Judge Elihu Berle said Wednesday that the coffee makers hadn't presented the proper grounds [ho ho, get it?] at trial to prevail. defendants' medical and epidemiology experts testified that they had no opinion on causation," Berle wrote in his proposed ruling. "Defendants failed to satisfy their burden of proving ... that consumption of coffee confers a benefit to human health." [experts said it might not cause cancer, but they were supposed to show it had benefits...gg so-called experts] The suit was brought against Starbucks and 90 companies under a controversial law passed by California voters in 1986 that has been credited with culling cancer-causing chemicals from myriad products and also criticized for leading to quick settlement shakedowns. The Safe Drinking Water and Toxic Enforcement Act, better known as Proposition 65, requires warning labels for about 900 chemicals known to cause cancer or birth defects. It allows private citizens, advocacy groups and attorneys to sue on behalf of the state and collect a portion of civil penalties for failure to provide warnings.
Based on my Asia travelling experience, SBUX is truly popular in Asia, even there are many local competitors there. Starbucks is increasingly investing in the Asian markets. Besides the effect of its brand, SBUX truly paid lots of efforts on many aspects, like enhancing consumers in-store experience.
Starbucks CFO Maw to retire, shares tumble (Reuters) - Starbucks Corp (SBUX.O) said on Thursday that Chief Financial Officer Scott Maw will retire at the end of November, stunning investors and sending shares of the world's largest coffee shop chain down more than 4 percent. Maw, 50, lasted just four years in the CFO role, and the company did not provide details on what prompted the retirement. Starbucks had strong sales growth and topped analyst earnings estimates during the first half of Maw's tenure but stumbled more recently, with the company’s chief executive earlier this month calling its performance “not acceptable.”
It's a beauty chart too, eh? I'd have to concede that the Aug 24, 2015 low has been thoroughly tested by that terminal shakeout. Weekly bars:
Are we selling off ahead of the inevitable war on Xmas because of some cups not showing Santa this year?
Thanks @StockJock-e for bringing SBUX forward. Looks bullish to me. On the longer-term weekly chart, a "back-up-to-the-creek" and on the hourly chart, a "spring". Weekly bars: Hourly Chart:
