When it comes to progressive corporations, few companies compare to the woke commitments of Starbucks. They gave tens of millions of dollars to Black Lives Matter, they offered to cover abortion expenses for their employees after the Supreme Court overturned Roe v. Wade, and they have been staunch advocates of LGBT causes around the globe. However, Starbucks, once the prince of progressive companies, is collapsing.
The collapse of Starbucks is insane:
Starbucks' CEO went on LIVE TV attempting to revive the stock.
He says, "it was a very tough quarter due to pressures on customers, China, and challenges of the business in the Middle East also impacting us in other geographies."
The worst… pic.twitter.com/JZGVwx3Wnc
— The Kobeissi Letter (@KobeissiLetter) May 2, 2024
– Starbucks’ CEO failed to reassure investors during a 15-minute interview as the company’s stock continued to plummet by 5%.
– Starbucks previously faced backlash for opposing employee unionization, and now faces further scrutiny and potential boycotts from leftist activists, exacerbating its financial challenges.
– Starbucks is experiencing internal strife as the woke left turns against it, highlighting the precarious nature of wokeness in corporate culture.
Starbucks CEO Laxman Narasimhan tried in vain to assuage the fears of investors who witnessed a collapse in Starbucks’ stock price on Wednesday. It was reported that Starbucks’ stock actually went down another 5% during the course of the 15-minute interview the CEO gave. If their goal was to assuage investors, they succeeded as well as Joe Biden’s impromptu press conference that sought to assure voters of his cognitive health.
Starbucks’ stock plunged nearly 20 points the other day after reporting a 6% drop in store traffic in April. That plunge has resulted in a 21-month low in stock price. That single-day drop also represents the coffee chain’s worst day on Wall Street since May of 2023. While analysts had predicted a 1% increase in sales, Starbucks reported a 4% drop overall in sales and a 15% drop in net income. To say it’s not a pretty picture would be an understatement. Here’s the economic summary from the Kobeissi Letter: ‘The collapse of Starbucks is truly insane. Company-wide same-store sales fell 4% and traffic fell 6% this quarter alone. In China, same-store sales plunged 11% with an 8% decline in the average order. International same-store sales FELL 6% while a 1.4% GAIN was expected. Management lowered revenue growth guidance from 7% to low-single digits and even their most loyal customers are looking for discounts, no longer interested in paying Starbucks’ characteristically exorbitant prices anymore, as we can see!’
Unfortunately for this once ideally woke company, this is all par for the course in their earnings loss. Investors were shocked in the fourth quarter of last year when it was announced that Starbucks had lost $11 billion in its market value. At one level, what’s happening to Starbucks may be simply reflective of the volatility of the market recently. But something far deeper is going on here with Starbucks than merely market volatility. This woke company apparently isn’t woke enough.
@feleciaforthewin What did starbucks dooooo?! 🤦🤦🤦 The Truth about the Starbucks Boycott rn #starbucksboycott #boycottstarbucks #greenscreenvideo
Starbucks is largely being taken down by its fellow leftists. Starbucks was already in hot water with campus activists before the hostilities in the Middle East broke out. Just days before October 7th, it was reported that student activists at more than 50 universities across the country were pushing administrators to end contracts with Starbucks in protest of the company’s response to employee unionization, which Starbucks executives had opposed.
With their leftist bona fides and their history of progressive politics, you’d think that they’d be all for unions, but they were not. They want nothing to do with unions that cut into their billions in profits. Ironically, Starbucks was already in hot water with progressives when October 7th happened. The woke left was ready to take Starbucks out even before the whole Israeli-Hamas conflict erupted. That conflict just poured gasoline on the fire that was already there.
What’s happening to Starbucks is very different from what happened to Bud Light, Disney, or Netflix. Those companies were brought down by the vast majority of Americans who have simply had enough of all of this woke insanity. Normal, everyday Americans made it clear to Bud Light, Disney, and Netflix that we are no longer spending a dime on anything even remotely woke. That was a rebellion by American citizens against all things woke.
What we have going on here with Starbucks is the woke actually turning on themselves. It’s the woke actually taking out one of their own. This is why, in the end, wokeness has no future. As we saw with the Bud Light and Disney fiasco, wokeness only ends up uniting the vast majority of the population against companies that push it. Companies that continue to push it inevitably provoke the ire of their woke customers for not being woke enough. Wokeness has no future, and yet another corporate giant appears to be learning that the hard way!
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