Starbucks loses USD 11 billion due to poor sales, boycotts
Houston: Global political tensions are spilling fast into Seattle-based Starbucks Corporation, as the company has lost approximately 11 billion dollars in value, erasing 9.4 per cent of the company's total value.
Within a span of 19 calendar-days, since its November 16 Red Cup Day promotion, shares of Starbucks have plummeted 8.96 per cent, which equates to a nearly USD11 billion loss, amid analysts' reports of slowing sales and a subdued response to the holiday season's offerings.
The boycotts at the Seattle, Washington-based chain have deep roots, touching on sensitive geopolitical issues after the company found itself in hot water following a tweet from Starbucks Workers United, the union representing many of its baristas, expressing solidarity with Palestinians.
"Amid an ongoing boycott due to the Israeli occupation's aggression against the Gaza strip, the undercurrent of discontent signals a challenging brew for the company's future," an industry analyst said.
Starbucks stocks declined for 12 consecutive stock market sessions, the longest-ever recorded streak since the company went public in 1992, and the stock currently hovers at around USD 95.80 per share, down from its yearly high of USD 115.
The company has denied wrongdoing in the scenarios but faces the challenge of maintaining its brand reputation amid divisive global issues.
In a recent call with analysts, Starbucks CEO Laxman Narasimhan said he remains optimistic about the company's diversified channels and ability to engage customers despite macroeconomic challenges and changing consumer behaviours.
The recent boycott of Starbucks comes in part of a large boycott of several global brands over their support of Israel. Starbucks in Egypt reportedly laid off workers in late November after being financially affected by the boycott - forcing it to cut expenses.
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Telangana teen dies by suicide after losing Rs 1 lakh in online betting
Hyderabad: An 18-year-old youth from Telangana’s Sangareddy district died by suicide after allegedly losing Rs 1 lakh on an online betting application, police said.
According to report published by NDTV on Friday, the deceased, identified as Vikram, was a resident of the Kandukur area. According to police, he consumed insecticide after suffering heavy financial losses through online betting. Vikram's family saw him taking the extreme step and rushed him to a hospital, where he died while undergoing treatment. The police have registered a case.
This is not an isolated case. Just a few weeks ago, a taxi driver in Hyderabad died by suicide after accumulating massive debts due to online betting apps.
The victim, Paladugu Sai (24) from Yadadri-Bhuvanagiri district, had reportedly been addicted to betting for nearly two years. He borrowed money from friends, relatives and banks, and was facing debts of around Rs 15 lakh at the time of his death. He too consumed pesticide and died during treatment.
Meanwhile, another similar case was reported from Madhya Pradesh recently. A 32-year-old civil contractor allegedly died by suicide in his house in Bhopal last week after losing nearly Rs 30 lakh in an online game. Police recovered a note from his house stating that he had taken loans to play an online game called Aviator. A case has been registered in that matter as well.
Police and experts have repeatedly warned about the rising menace of online betting and gaming platforms, urging people especially youth to stay away from such activities and seek help in case of addiction or financial distress.
(Assistance for overcoming suicidal thoughts is available on the state’s health helpline 104, Tele-MANAS 14416.)
