Why Starbucks Lost 18% of Its Value in April
Last month was lousy for most stocks, but it was downright miserable for Starbucks (NASDAQ: SBUX) investors. Shares of the coffeehouse giant fell 18% in April, according to data from S&P Global Market Intelligence, from a combination of store closures in China and the growing threat of unionization at more of its domestic stores.
In its defense, Starbucks stock was facing a headwind anyway. The S&P 500 (SNPINDEX: ^GSPC) fell nearly 9% last month, pulling most stocks in a bearish direction. Nevertheless, the premier name in coffee houses is facing its own unique problems.
Chief among these problems is the (pun completely intended) brewing concern that more of its stores in the United States will see their workers form labor unions. A few dozen Starbucks stores have opted to create unions just within the past few months, and more are likely to be on the way.
Source Fool.com
