Starbucks’ value drops by $11 billion due to boycotts

Starbucks has faced challenges recently, including boycotts, staff strikes, and a not-so-successful holiday promotion, resulting in a $10.98 billion drop in market value. Issues like a less festive Red Cup Day and global political tensions in its cafes have contributed to the company’s struggles, according to an industry analyst. The stock market pressure, driven by societal problems, has caused Starbucks shares to experience their longest losing streak since its 1992 initial public offering. Within 19 days of its November 16 Red Cup Day promotion, shares fell by 8.96 percent, leading to almost an $11 billion loss. The boycotts, rooted in geopolitical tensions, began after Starbucks Workers United expressed solidarity with Palestinians in a tweet, leading to calls for a boycott on social media. Starbucks’ legal actions against the union have further fueled the debate, forcing the company to navigate business operations amid political expression.

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