Starbucks and Snap shares are sliding after their latest earnings reports
Earnings are dominating the spotlight today, but two names are standing out from the pack. Starbucks Corp (NASDAQ:SBUX) and Snap Inc (NYSE:SNAP) are moving sharply lower after their respective quarterly reports failed to impress investors.
Starbucks Stock Slides on Earnings Miss
Starbucks stock is 10.1% lower before the bell, after the coffee chain missed analysts' expectations for its fiscal second-quarter report. Revenue came in at $8.7 billion, falling short of estimates , while U.S. same-store sales declined 2%. Despite the weak results, CEO Laxman Narasimhan struck an optimistic tone, noting the company is where it should "should be at this point in our turnaround.”
Following the results, Stifel cut its price target on Starbucks to $92 from $103, and at least 10 other firms followed suits with downward price revisions as well. The equity's average 12-month target price of $93.98 represents a 10.6% premium to last night’s close.
Shares are set to open around the $76 level, which previously acted as support during an early April pullback. The security is also on track to extend its year-to-date deficit, which currently stands at 7%.
Snap Stock Tanks After Pulling Guidance
Snap stock is off 15.2% in premarket trading, after the social media firm posted slightly better-than-expected first-quarter revenue but withheld second-quarter guidance, citing macroeconomic uncertainty. The company cited “headwinds” that emerged early in the current quarter, prompting a more cautious tone.
MoffettNathanson cut its price target to $1 from $8 in response, with 11 other analysts slashing their price objectives as well. The consensus 12-month target price of $10.05 still implies a 31.7% premium to Tuesday’s close.
SNAP is now pacing to snap a six-day winning streak and is down 15.6% in 2025. The stock’s early losses suggest a breakdown of recent momentum, as it pulls back from a failed attempt to reclaim its mid-March highs.