“Starbucks” is in trouble… a double boycott and billions in losses

Starbucks shares have suffered a series of record losses in recent weeks, as a combination of boycotts, employee strikes and tepid holiday promotion led to the stock suffering its longest losing streak since its listing in 1992, according to a report by CNBC Arabia. The series of losses began on the 17th of last November, declining by about 11% from the peak of 6 months during 12 sessions extending from the 17th of November to the 5th of December, and the company lost $13.3 billion of its market value during this period. According to Newsweek, the company found itself in trouble after a tweet from the Starbucks Labor Union, which used a logo similar to the company’s logo, expressing its solidarity with the Palestinians. This, according to Starbucks, led to threats and calls for a boycott from those in solidarity with Israel. The company also claimed that the union’s opinions had a negative impact on Starbucks’ reputation and the safety of its workers. As a result, Starbucks filed a lawsuit against the union, accusing it of using the company’s name and logo in posts in solidarity with Palestine on social media, in addition to organizing marches in American cities to support the Palestinians. On November 16, the day before the stock began its decline, thousands of company workers went on strike in hundreds of stores, protesting the lack of their first contract despite a two-year organizing campaign. On the other hand, Starbucks suffers from being part of a boycott campaign in Arab countries and being placed on a list of international companies and products that allegedly support the Israeli government in its war on Gaza. There is no doubt that this boycott will have a negative impact on the sales of companies in these countries, but until this moment there is no real assessment of the extent of the damage, and the shares of these companies have not suffered direct losses as a result of this boycott. Stock decline. JPMorgan Chase Bank revealed that the stock’s decline over the past two weeks came as a result of concerns about “slow China data” and sales trends. The bank also lowered its estimates for Starbucks sales in the United States for the first quarter to a growth of 4% compared to the same period last year. .