Is Starbucks a Buy or Sell After Suspending Its Share Repurchase Program?
One would think Starbucks (NASDAQ: SBUX) would be taking off as the world recovers from COVID-19. After all, the premium consumer brand suffered from economic lockdowns, but now that everyone is out and on the move again, and many small business competitors closed down during COVID, shares should be on the upswing, right?
Instead, Starbucks shareholders have seen the opposite. High inflation, a unionization push, geopolitical tensions with the company's main international market of China, the unexpected resignation of its CEO, and, yesterday, the suspension of the company's buyback program have all weighed on the stock. On a positive day for the markets, Starbucks fell 3.7% Monday, and it's now down 25% of the year.
However, the current pessimism could be an opportunity for those with an eye on the long term.
Source Fool.com
