sbux missed earnings. Now trading at “only 21x earnings”. I think it was overvalued before and is even more overvalued after the earnings miss and subsequent stock drop. The stock is
no longer a growth name. Therefore, the multiple deserves to contract. I think it has no levers left to pull at this time other than acquisitions, and that’s not a suitable strategy for them. Or maybe this is all temporary and the brave who buy now will be rewarded.
Thoughts?
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