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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Man arrested in Hyderabad for impersonating police officer using AI videos
Hyderabad (PTI): A 27-year-old man was arrested in Hyderabad for allegedly impersonating a police official and uploading fabricated videos on social media platforms to gain followers, police said on Wednesday.
The accused, who worked as a delivery executive with a food delivery aggregator, created and circulated misleading videos using AI-based software.
He falsely depicted himself as a police official and showcased weapons, potentially causing panic and misleading the public, a release from Hyderabad Police said.
Police said it came to their notice that fake videos were being circulated on social media, showing individuals posing as police personnel and displaying weapons.
Upon preliminary inquiry, it was found that the videos were fabricated using AI software and did not represent any real police activity.
The accused unlawfully impersonated a police official and created deceptive digital content, which is a punishable offence under relevant provisions of law.
Such acts can erode public trust and create unnecessary alarm, the release said.
Acting on credible information, police teams apprehended the accused and seized a mobile phone used in the offence.
A case under relevant sections of the BNS and the IT Act, 2000, was registered at Kalapathar Police Station.
Further investigation is underway to determine whether any other persons were involved in the creation and dissemination of such content, police added.
