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- 1 SBUX stock price experienced little price drop in its recent day of trading.
- 2 The trading volume further showed bears dominance.
Starbucks Corporation (NASDAQ: SBUX) stock experienced a decline in its price with nearly 9% in recent one-month while the year-to-date (YTD) price is also showing more than 2% of drop. This indicates from the beginning of this year, Starbucks Corporation gained bears dominance who were able to pull its price down. However, earlier in May, the stock noted its 52-week high at the trading price of $115.48.
SBUX Stock Price Analysis
SBUX stock price closed at the price of $97.92 on June 7th, Wednesday and declined 0.31%. The opening price in yesterday’s trading session was at $98.55, while the stock gave a high at $98.86 and low at $97.59. From the beginning of this week, the stock started dropping downside and slid down from its 200-day EMA. The bearish trend of stock seems like it will continue with bear dominance.
As shown in the above price chart, the stock is majorly showing bears dominance which took its RSI towards the downside direction. This is why the stock is also heading towards the oversold zone.
Earlier, last month, when Starbucks Corporation released its Q2 2023 EPS and Revenue results, the stock drove upside and marked its 52-week high. As the second quarter results were positive, the stock price also showed a bullish trend which didn’t stay for a longer time, and on the immediate next day of the quarterly report, the stock fell down and till date is mostly indicating bears dominance.
Furthermore, the analysts have set their one year price target at the price of $114.92 which is nearly 17% up from the recent closing price, while the maximum estimated price is at $131.00 and the minimum estimate is at $101.00.
Starbucks CFO Market-Talk
The market cap of Starbucks Corporation is nearly at $112.25 Billion and the total revenue for 2023 is $8.72 Billion. The revenue is 0.11% higher compared to the previous quarter, while the net income of Q2 23 is $908.30 Million.
At a TD Cowen’s consumer conference, Starbucks CFO, Rachel Ruggeri said “Starbucks’ margins in its Chinese business likely won’t go back to pre-pandemic levels given the growth of its lower-margin delivery business there.”
Ruggeri said the Starbucks digital channel, which represented nearly 15% of its business in China before Covid, now represents almost 47% of its business due to growth in delivery. She further added that delivery carries a lower margin percentage as compared to in-store purchases but should still be able to drive higher revenue and subsequently higher profit.
Disclaimer
The views and opinions stated by the author, or any people named in this article, are for informational ideas only and do not establish financial, investment, or other advice. Investing in or trading crypto or stock comes with a risk of financial loss.
With a background in journalism, Ritika Sharma has worked with many reputed media firms focusing on general news such as politics and crime. She joined The Coin Republic as a reporter for crypto, and found a great passion for cryptocurrency, Web3, NFTs and other digital assets. She spends a lot of time researching and delving deeper into these concepts around the clock, and is a strong advocate for women in STEM.
