Sbux: broken stock or opportunity?
Sbux missed earnings. Now trading at “only 21x earnings”. I think it was overvalued before and is even more overvalued after the earnings miss and subsequent stock drop. The stock is no longer a growth name. Therefore, the multiple deserves to contract. I think it has no levers left to pull at this time other than acquisitions, and that’s not a suitable strategy for them. Or maybe this is all temporary and the brave who buy now will be rewarded. Thoughts?
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Lovepieman : They’re still a multibillion dollar company. I think the turn around is going to take awhile especially since the boycotts and hundreds of stores are closed right now due to renovations. Compared to other coffee companies they’re still the power house