Starbucks Corporation - Common Stock (SBUX) Stock Analysis — Latest Investor Quotes & Trade Calls

Starbucks Shows Mixed Signals with International Growth

"A different conversation when it comes to Starbucks. SBUX is your ticker down about 3% trading just shy of $82 a share. They've come back to the growth picture. They're saying strong international sales are helping push that market up and push those their bottom line higher. But that being said, it looks like there is still some weakness baked into those shares."

Starbucks is trading lower despite a recovery in its growth profile, buoyed by strong international sales. However, underlying weaknesses remain, leaving investors with a mixed picture of the stock's near-term prospects.

Bullish Contrarian Play on Starbucks via Options Activity

+2.61%current return

"Huh, that's very interesting. It's a contrarian play and you have so much negative sentiment on Starbucks right now. Why would this trader do this? And I thought, well, let's look at the risk versus reward. If everyone is negative on the company, where's the max pain to the upside? Because the shorts have to cover and the stock can rally. And I was looking a little bit too at the fundamentals. Remember they just got their new CEO from the burrito stock, CMG. Could he really let the company continue to fall? And I thought, you know, it makes sense of why the stock could bounce and I think that could play a big turnaround in this quarter. So, an actually bullish short term on Starbucks."

The speaker outlines a contrarian trade call on Starbucks based on unusual options activity near its 52-week lows. Noting that a large call order was executed after puts were closed, he argues that the negative sentiment may lead to a short-term bounce as shorts cover their positions and fundamentals improve under new leadership.