Starbucks' market value drops by 12 billion dollars

As the company's shares signaled a significant slowdown in commercial growth in sales figures, they lost more than 1 percent of their value as of 20:00 TSI today, marking the longest losing streak for the company since its initial public offering in 1992, with 12 consecutive days of decline.

110 BILLION DOLLAR LOSS

The company's shares have lost more than 10 percent of their value since November 16, known as "Red Cup Day," when promotional products were offered to customers and thousands of employees in the US went on strike. Starbucks' market value fell below 110 billion dollars, decreasing by more than 12 billion dollars over the 20-day period.

Employees at hundreds of Starbucks branches in the US went on strike on November 16, demanding improvements in working conditions.

BOYCOTT CAUSED LOSSES

On the other hand, Starbucks' decision to sue the labor union after the union posted "Solidarity with Palestine!" on the X social media platform had sparked controversy. This decision by the company, along with calls for action on social media platforms, led to a series of boycotts.

Meanwhile, Starbucks CEO Laxman Narasimhan stated in his presentation at the Morgan Stanley Global Consumer and Retail Conference that the recovery in China was not as expected.

Analysts pointed out that the rapid growth of the Chinese-origin coffee chain Luckin Coffee, driven by high demand, has created competitive pressure for Starbucks in China, noting that as Luckin succeeds, the focus of other coffee chains on the Chinese market will put the US company in a difficult position.

News Source: AA