Starbucks (SBUX) and Snap (SNAP) Stocks Nosedive After Earnings Miss—Wall Street’s Love Affair With Overpriced Coffee and Vanity Metrics Cools Off

Another quarter, another reality check for legacy brands trying to justify bloated valuations. Starbucks tumbles 12% pre-market as inflation-weary consumers balk at $7 lattes—while Snap’s ad revenue craters faster than a crypto exchange during a bear market.

Both companies slashed forward guidance, proving even blue-chip stocks aren’t immune to the great post-pandemic hangover. Analysts scramble to downgrade price targets, but let’s be real—these corrections were overdue.

The real lesson? In 2025’s brutal market, earnings matter again. No amount of corporate buzzwords or metaverse pivots can disguise weak fundamentals when the Fed’s still playing whack-a-mole with inflation.

Snap Surpasses Expectations but Spooks Investors with Cautious Tone

Beneath the headline numbers, Snap’s performance was robust in several areas. Daily active users ROSE 9% year-over-year to 460 million, and the company crossed a significant milestone of 900 million monthly active users—a key step toward its long-term goal of 1 billion. Moreover, the number of active advertisers on the platform surged by 60%, signaling deeper engagement from the business side.

Still, the post-earnings Optimism quickly faded due to Snap’s decision not to provide formal guidance for the second quarter. Citing macroeconomic uncertainty and unpredictable ad demand, the company warned that revenue momentum may not be consistent, even as topline growth continued. In a note to shareholders, Snap emphasized a need to align spending with realized revenue and called attention to a “challenging” start to Q2, adding further fuel to investor concerns.

SBUX Stock Chart Daily – The Downtrend Will Resume Tomorrow

Meanwhile, Starbucks also found itself in a steep post-market slide after releasing results for its fiscal second quarter, which ended March 30, 2025. The coffee chain reported adjusted earnings of $0.41 per share on revenue of $8.76 billion—both slightly below Wall Street expectations, which had projected $0.49 in EPS and $8.83 billion in revenue.

Starbucks Falls Sharply After Missing Q2 Estimates

The modest miss on the numbers was enough to trigger a sharp reaction in the stock. Shares of Starbucks closed the regular session at $84.85 but tumbled more than 7% in after-hours trading to $78.81 and continued trending downward. While the company did not issue a major downward revision to its outlook, the weaker-than-expected earnings and cautious consumer sentiment weighed heavily.

Starbucks’ GAAP results also included items not reflected in the non-GAAP adjustments, which may have added to the lack of clarity around its CORE profitability for the quarter.

Outlook for SBX and SNAP

Both Snap and Starbucks are facing investor backlash not just for missing targets, but for injecting uncertainty into their future narratives. Snap’s user growth remains strong, and Starbucks retains global brand momentum—but in an environment increasingly defined by caution, visibility and consistent execution are now paramount. Without clear guidance, even strong engagement metrics may not be enough to shield stocks from sharp corrections.