What are Starbucks stocks?
Starbucks (or SBUX) stocks are company shares available for public trading via the Nasdaq Exchange.
The first Starbucks store opened in 1971. Since then, the coffee giant has grown to be one of the most recognisable brands in the world. Starbucks takes pride in its commitment to producing the highest-quality coffee and ensuring a strong and engaging relationship with its customers and communities. Its dealings are guided by key values such as creating a welcoming culture for all and being present and transparent with consumers, which have contributed to the company's ever-increasing growth and success.
The company is highly profitable, having generated $32.3 billion in revenue in 2022 – a 10.98% growth from 2021. Its popularity originates from its unique speciality drinks that you won't typically find in a regular coffee shop, while its culture is entirely consumer-focused, producing products that are easily customisable depending on the customer's exact taste and preferences.
Starbucks' shares were listed publicly for the first time on June 26 1992. At this point, the company had 140 locations and produced a revenue of $73.5 million. By the end of the first day of trading, Starbucks had sold 12% of its shares at $17 each and, by September 1992, the Starbucks share price had risen by 70% – but this was just the start of its success story.
Starbucks is well-regarded as a financially stable company and this is reflective of its continued growth. It's innovative and forward-thinking, introducing concepts like electronic payments, pick-up-only stores, mobile apps and third-party delivery connections, to hold onto its spot above its rivals. These concepts were introduced just before the COVID-19 pandemic, enabling the company's omnichannel sales model to help keep things moving, despite the forced closure of stores.
The coffee giant presents unique global expansion opportunities and continues to report solid growth within the food and beverage industry. The SBUX stock price today is attractively priced despite inflation rises and the company's forward-thinking approach to long-term growth helps to keep SBUX shares popular among traders and financial experts.
As of October 2023, the stock price for SBUX boasts a 52-week range of $82.43 to $115.48.
What influences the stock price of SBUX?
Similarly to other major company stocks, the price of shares in Starbucks can be influenced by several factors, including:
- Global economy: Rising costs due to high levels of inflation may see a change in customer behaviour, resulting in reduced discretionary spending. People are becoming more self-aware and cutting costs where possible. Spending money on takeaway coffee is deemed unnecessary as more people choose to make their own at home. This, in turn, comes with the overall decline of the restaurant industry and other factors that affect the operations of the Starbucks Corporation.
- Company news: The Starbucks stock price can be influenced by news and announcements published by or about the company. This includes financial reports and news of changes in management, which can see a rise in the overall stock price. However, reports of staff redundancies, strikes, unfavourable working conditions and poor performance may cause a decline.
- Competitors: Starbucks has some tough competition in the industry. While it remains arguably the most reputable and well-known coffeehouse chain in the world, there are many smaller coffee shops at both local and global levels offering similar products, sometimes at more affordable prices. Its rivals are not limited to coffee specialists, either; the likes of McDonald's and Dunkin' can threaten Starbucks' overall market position.
- Protest movements: There are several sociocultural movements encouraging the support of small, independent and local coffee shops over multinational corporations. This could threaten the future stability of the company.
How can I trade Starbucks stocks?
Opening a Tradu account enables you to start trading using financial derivatives, meaning you don't need to own the underlying asset. With Tradu, you can use this trading method:
- CFDs: Contracts for difference (CFDs) involve speculating on whether a share price will rise or fall. The buying and selling of a contract is related to these price movements, and the difference in value between the opening and closing of the contract will calculate your profits or losses.
Execute these trading methods using leverage to increase your market exposure. This allows you to take larger positions with a smaller deposit. However, please note that using leverage can also amplify any losses.
How to invest in Starbucks
Investing in Starbucks shares means you'll be taking ownership of the underlying asset. You can choose to hold or sell the stock in the long or short term, capitalising if share prices rise. To start investing, simply add funds to your Tradu account and decide how much you'd like to put in.
It's worth noting that long-term investment is typically less volatile than trading derivatives. You cannot use leverage when trading stocks directly and, if you own the underlying asset, you'll have fewer opportunities to profit because you can only do so if prices move in one of two directions.
Advantages of trading Starbucks stocks
- Industry leader: As Starbucks is one of the world's most recognisable brands, you'll be gaining market exposure to a highly successful and profitable global company.
- High liquidity: Starbucks' high profile typically attracts an increased number of buyers and sellers in the market, making trades easier to execute.
- Trade both market directions: As stock prices can often move unpredictably, it's worth taking advantage of bull and bear markets using financial derivatives, especially when trading the stocks of a market-leading organisation.
- Leverage: You can potentially maximise your returns using leverage but, if your trade goes against your prediction, you would be at risk of greater losses.
Disadvantages of trading Starbucks stocks
- Market fluctuations: External factors beyond your control can impact the market at any time. This can make it difficult to predict values and price movements.
- Limited portfolio: If you solely trade one company's stock, your limited market exposure makes you more vulnerable to issues that affect that company. We recommend trading across a range of markets as it's safer and more profitable to spread your risk.
- Leverage risk: Whenever you use leverage to gain more exposure for the same cost, you risk magnified losses if things don't go your way. Use our specialist risk-management tools before taking a position to work around this as best you can.
How to start trading Starbucks stocks with Tradu
- Open an account: Begin trading with Tradu by signing up today.
- Choose a strategy: Your available capital, risk tolerance, preferred markets and trading goals will determine your overall approach.
- Do your research: Review the historical performance of Starbucks shares before using technical analysis to track and forecast price direction.
- Take your position: Buy stock directly or place your trade using CFDs. Calculate your position size and utilise our risk-management tools to limit your potential losses.
- Diversify your portfolio: Expand your portfolio by trading across a wide range of markets, including crypto , forex and commodities.
