Starbucks Stock Sinks, Seattlest Says Hold
Even though some of us around the Seattlest newsroom like to beat up on little ol’ Starbucks whenever the opportunity arises, today’s news that Starbucks' stock dropped like a hockey puck of used espresso knocked out of a porta-filter didn’t put a spring in the steps of all us Seattlests.
No. Some of us actually own stock in the company (as do, we assume, some of you considering how many people in Seattle worked for the company at one time or another) and we find no cause to rejoice in Starbucks' sudden massive devaluation. It is a large share of our retirement fund.
According to The Independent of London (via Chain Leader):
Customers are continuing to desert Starbucks and the ubiquitous coffee house chain issued another profit warning last night, sending its shares plunging more than 10 per cent in after-hours trading. Its average outlet in the US is taking in around 5 per cent less in revenues than a year ago, it admitted.
The problem? In short, so far the return of Howard Schultz has yet to resemble what Steve Jobs did when he went back to Apple. Or as Seattlest Ronald put it:
Schultz--like Bush--doesn't seem to understand that he has squandered his goodwill, that no amount of fair-trade, shade-grown coffee is going to bring harmony to the espresso battlefield.
He may be right, but fear not remaining Starbucks stockholders. We’re happy to hang onto our shares--though we’re not issuing a Buy rating yet--because when you get down to it, we’re talking about a company that sells coffee all over the world. Coffee. It’s the last unregulated vice we have. People can’t get enough of this shit and say what you will about the taste of Starbucks, they’re fucking everywhere. Eventually they’ll figure their shit out and people will come flocking back to them.
So just hang in there and remember that this is a long-term investment. Heck. I remember a few years ago when another company was facing a massive defection of their customers and the devaluation of its stock. It's doing just fine now. The company? McDonald’s and they sell lattes now, too .
Look at the picture. Cool, beautiful people go to Starbucks. Don't you want to be cool and beautiful? Thanks for putting the picture in our Flickr Pool chip the photo guy!
