As Starbucks continues to expand its operations into China, the stock has hit an all-time high this week! The company has been innovative in everything from adjustments in its menu when entering new countries, to offering new deals to employees, thereby improving its employee retention rates.
Jim Cramer calls close attention to the rising price of coffee beans and how the commodity can affect Starbucks’ stock price. Cramer claims that big hedge funds sold, or shied away from, Starbucks stock for fear that the company would need to boost its coffee prices should the coffee commodity continue to rise.
Now that Coffee has dropped to the lowest price in a year (approximately $1.58 per pound), analysts are starting to see the advantages of investing in Starbucks. Customer loyalty has also been a positive factor for Starbucks. Heads of Starbucks’ marketing strategy have stated time and again that they wish to create a “cozy home-like environment” for customers (a place where they can feel safe, loved, and comfortable), and the strategy has been paying off big-time.
Meanwhile, Jimmy Kimmel seems to be pessimistic about Starbuck’s new $7 coffee cup.
Who do you side with? Comment on our Facebook post and join the discussion.
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EUR/USD Update
The Euro is having a very volatile week against the US Dollar as data releases impact the two currencies individually.
The pair has fallen 20 points due to the recent negotiations between Greece and the Euro. As Greece continues to push for a better bailout deal, investors are debating whether or not Greece could ultimately leave the Eurozone, thereby hurting the Euro.
