Starbucks lost $11 billion in value amid boycotts

  • December 6, 2023

Starbucks Corp’s market value has dropped by $10.98 billion because of staff strikes, boycotts, and a lackluster holiday promotion. As Starbucks deals with complicated social problems, the stock market has put a lot of pressure on the company. Investors have pulled their money out, and Starbucks’ shares have been losing value for the longest time since their initial public offering in 1992.

Starbucks stock has dropped 8.96% since its November 16 Red Cup Day promotion, which is equal to a loss of almost $11 billion. There are deep roots to the boycotts, which touch on touchy global issues. The company got into trouble after a tweet from Starbucks Workers United, the union that represents many of its baristas, showing support for Palestinians.

The union’s lawsuits against the company have heated up the discussion, leaving Starbucks to run its business while dealing with political speech. Even though the economy is bad and people’s habits are changing, Starbucks CEO Laxman Narasimhan is still confident in the company’s many ways to reach customers and keep them interested.

Source: Newsweek