Starbucks Stock (NASDAQ:SBUX) Soars Despite Niccol’s Controversial Leadership Damage
CEO's Dubious Victory Can't Stop the Rally
The Numbers Don't Lie - Market Defies Leadership Drama
While Niccol's tenure continues to raise eyebrows among analysts, Starbucks shares are charging ahead like a caffeinated bull. The market's shrugging off governance concerns in favor of pure momentum - classic Wall Street prioritizing short-term gains over long-term stability.
Investors are betting big that even questionable leadership can't derail the coffee giant's fundamental strength. The stock surge suggests shareholders care more about quarterly returns than executive performance metrics.
Another reminder that in modern finance, sometimes bad press is just noise - until it isn't. The rally continues until someone actually reads the fine print.
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The list is mostly being built from who had the biggest blunders in 2025, as well as based on decisions that impact shareholders, customers, and employees. And the numbers do support such a notion. Back in March, the report noted, Starbucks stock was trading around $117 per share. Today the number is closer to $85 per share. This led to two key conclusions: “Niccol has damaged the company,” and “Shareholders have paid the price.”
And while Niccol had some significant plans for turnaround, plans like bringing Starbucks back as a “third place” and leaning heavily on baristas to make a warm and welcoming yet incredibly fast-paced environment, the plans did not turn out as hoped. Instead, Niccol sold off the Starbucks operation in China—which was supposed to be a major draw—and oversaw not only surging labor trouble but also periodic stock-outs on food.
We Investigated Ourselves and Found We Did Nothing Wrong
Meanwhile, the “third place” plan is sticking around, and Starbucks has a little new ammunition to support it. Starbucks commissioned a study from Morning Consult, and discovered that 70% of Gen Z consumers were planning to hit a coffee shop over Thanksgiving week. Interestingly, only about a third of that number were planning to hit a bar or pub that same weeks.
The study found that the 2,201 United States adults studied were planning to “savor the moment” with friends or family during that coffee shop visit. That was more than any other generation except millennials, which was a significant point in its own right. Though it is hard to project a marketing strategy from one study that covers under 2,500 people out of a population of over 300 million, the point does remain.
Is Starbucks Stock a Good Buy?
Turning to Wall Street, analysts have a Moderate Buy consensus rating on SBUX stock based on 12 Buys, seven Holds and two Sells assigned in the past three months, as indicated by the graphic below. After a 17.22% loss in its share price over the past year, the average SBUX price target of $95 per share implies 11.24% upside potential.
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