US Stocks Likely To Open In Red After Christmas Break But Analysts Still Expect A Santa Rally Into The New Year
Written by Emily J. Thompson, Senior Investment Analyst
Updated: Dec 26 2024
0mins
Should l Buy SBUX?
Source: Benzinga
Market Performance: U.S. stock futures fell on Thursday after Christmas, with all major index futures declining; however, the S&P 500 is expected to achieve a robust 20% return for the second consecutive year, driven by a potential Santa Rally.
Economic Insights: Analysts express mixed sentiments about the market outlook, noting a strong performance in consumer discretionary stocks and positive signs in durable goods orders, while cautioning about uncertainties surrounding monetary policy in 2025.
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Analyst Views on SBUX
Wall Street analysts forecast SBUX stock price to fall
21 Analyst Rating
12 Buy
7 Hold
2 Sell
Moderate Buy
Current: 99.540
Low
59.00
Averages
96.12
High
115.00
Current: 99.540
Low
59.00
Averages
96.12
High
115.00
About SBUX
Starbucks Corporations is a roaster, marketer, and retailer of specialty coffee globally. Its North America segment includes the United States and Canada. Its International segment includes China, Japan, Asia Pacific, Europe, Middle East and Africa, Latin America, and the Caribbean. Its North America and International segments include both Company-operated and licensed stores. The Channel Development segment includes roasted whole bean and ground coffees, Starbucks-branded single-serve products, a variety of ready-to-drink beverages, such as Frappuccino and Starbucks Doubleshot, foodservice products, and other branded products sold outside the Company-operated and licensed stores. A large portion of its Channel Development business operates under a licensed model of the Global Coffee Alliance with Nestle, while its global ready-to-drink businesses operate under collaborative relationships with PepsiCo, Inc., Tingyi-Ashi Beverages Holding Co., Ltd., Arla Foods amba, Nestle, and others.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
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- Revenue Recovery Signs: After several years of sluggish growth, Starbucks reported a 6% year-over-year increase in total revenue and a 4% rise in comparable sales in the first quarter, with new CEO Brian Niccol expressing confidence in future profit recovery.
- AI Innovation Application: The newly launched ChatGPT drink recommendation service allows customers to select beverages based on personal preferences and moods, which, while unlikely to significantly impact sales in the short term, aids in rebranding and attracting AI users.
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- AI Potential: The ongoing discussion about whether AI can create the world's first trillionaire highlights the innovation potential within the tech sector and the prospects for future economic growth, drawing investor interest towards companies developing related technologies.
- Unique Tech Company: A recent report identifies a little-known company dubbed an 'Indispensable Monopoly' that provides critical technology needed by Nvidia and Intel, underscoring its significant position in the semiconductor industry and future growth potential.
- Investment Recommendations: While Starbucks did not make the latest list of top 10 stocks, analysts believe that the other selected stocks could yield substantial returns in the coming years, reflecting the market's ongoing pursuit of high-quality investment opportunities.
See More
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- Importance of Earnings Week: Cramer emphasized that next week will be the most critical for the tech sector this quarter, as it will reveal whether the market's confidence in high-valuation tech stocks is overly optimistic, particularly after reports from Verizon and Corning.
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