Starbucks Stock Slides on Forecast

SBUX is brushing off strong fiscal second-quarter results

Deputy Editor
May 3, 2023 at 10:46 AM
facebook twitter linkedin

Starbucks Corp (NASDAQ:SBUX) is slipping today, after the coffee giant maintained a conservative 2023 forecast, expecting "meaningfully slower growth" in the current quarter. However, the company beat both earnings and revenue expectations in its fiscal second-quarter results. No fewer than four analysts lifted their price targets after the earnings event, though two also chimed in with price-target cuts. 

At last glance, SBUX was down 7.6% at $105.81. This bear gap has the stock further removing itself from its May 1 one-year high of $115.48, though still up 6.5% year-to-date. Longer term, the equity's 140-day moving average captured its March pullback before its recent tally, and still lingers below as potential support. 

Options traders have been much more bullish than usual, per SBUX's 50-day call/put volume ratio of 3.29 at the International Securities Exchange (ISE), Cboe Options Exchange (CBOE), and NASDAQ OMX PHLX (PHLX). This ratio ranks higher than 96% of readings from the past year. 

So far today, 50,000 calls and 45,000 puts have been exchanged, which is eight times the intraday average amount. The weekly 5/5 105-strike put and weekly 5/5 110-strike call are the most popular, with new positions opening at both. 


Now is the time to join our thriving community of Event Traders who consistently profit from every earnings season. With this discounted subscription opportunity, you'll stay ahead of the curve and seize opportunities others miss. Do not let Q3 earnings season pass you by – subscribe now and supercharge your portfolio with expert insights that turn market reactions into profit-generating opportunities!! Don't waste another second... join us right now before the next trade targeting +200% is released!