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Starbucks - AI Stock Analysis
Analysis generated July 9, 2025
Founded in 1971, Starbucks Corporation (NASDAQ: SBUX) is the world's leading specialty coffee retailer and roaster. With a massive global presence, the company operates in over 80 countries through over 32,000 stores. Starbucks provides high-quality coffee, espresso, teas, and various food items. It's also well known for its focus on customer experience and brand loyalty, which it has successfully built over decades.
Fundamental Analysis
Starbucks reported revenue of $8.76 billion for the last quarter, representing a decrease of 6.77% from the previous quarter, signaling potential issues. Nevertheless, there has been a 2.32% increase compared to the same quarter last year, which shows positive year-over-year growth. While the revenue increase year-over-year might provide some optimism, the quarter-over-quarter decline necessitates a deeper look into operational efficiencies and market dynamics.
The net income for the last quarter was $384 million, a decrease of 50.79% from the previous quarter and 50.26% from the same quarter last year. These numbers are concerning and signify a considerable drop that can be attributed to higher operational costs or other financial strains.
Starbucks' EBITDA for the last quarter stood at $1.06 billion, witnessing a decrease of 32.69% from the previous quarter and 30.51% year-over-year. The consistent decrease in EBITDA is another significant concern, indicating possible operational inefficiencies or rising costs.
With a current P/E ratio of 34.03, Starbucks appears to be overvalued. A high P/E ratio typically suggests that the stock price is high compared to earnings and could indicate a bearish outlook unless the company can justify such valuation through robust future growth prospects.
Technical Analysis
Today's stock price of Starbucks is $94.94, marking an increase of 4.71% over the last month. This indicates a positive short-term trend. Over a longer term, the stock price has appreciated by 34.21% over the last year, suggesting a bullish long-term trend that may attract growth-focused investors.
The current Simple Moving Average (SMA10) is $94.20 which is higher than the previous SMA10 of $93.92. The increasing SMA10 is an indicator of potential upward price movement, further reinforcing a bullish short-term outlook.
However, the Relative Strength Index (RSI) is at 56, which suggests a neutral condition. An RSI reading between 30 and 70 indicates market equilibrium, suggesting that the stock is neither overbought nor oversold at this point.
Alternative Data Analysis
In terms of job postings and employee sentiment, Starbucks has 13,173 open positions according to data from popular job boards. The number has remained stable over recent months, indicating a steady operational state. However, only 44% of employees have a positive business outlook, which is relatively low and concerning.
On the customer acquisition front, Starbucks estimates 19 million visitors to their webpage, with an 11% increase over the last few months. This surge is a bullish trend, signaling heightened customer interest and potential for increased sales. Additionally, Starbucks' mobile apps are downloaded by 9,200 users daily, with this number remaining stable over the last few months.
When looking at customer engagement, Starbucks' Instagram page has 18 million followers, with no significant change in recent months. Meanwhile, its Twitter page has 11 million followers, with a 1% decrease over the last few months. Although these numbers indicate a large following, the stagnation and slight decline are causes for slight concern.
Interestingly, AltIndex's AI score, which combines fundamental, technical, and alternative data, rates Starbucks at 31, which is a strong sell signal. This score is crucial for investors relying on AI-driven insights for decision-making.
Conclusion
Starbucks Corporation presents a mixed bag of financial indicators. While the company showcases a solid year-over-year revenue growth and a strong stock price performance, the significant decreases in net income and EBITDA raise red flags. The high P/E ratio might indicate overvaluation, and the low employee sentiment further complicates the outlook.
On the technical front, recent trends are positive, signaling a potential short-term upward momentum. However, alternative data reveals stagnation in social media engagement and a concerning AI score of 31, suggesting a negative outlook.
Given the data provided, potential investors should approach with caution. While there are positive signals, the concerns highlighted warrant a careful and well-considered decision. It may be advisable to monitor the company's performance in the upcoming quarters for more definitive action.
Disclaimer: This AI stock analysis, generated by an experimental AI tool, is for informational purposes only and not financial advice. Information is based on publicly available data and may not always be accurate or current.
