Starbucks experienced a significant decline in its stock value, dropping over 16% after a surprising decrease in sales led to a broad investor sell-off. The company's market value saw more than $15 billion erased following a trading update that highlighted a drop in earnings due to customers opting against more expensive coffee options. This downturn in sales marks the first since 2020, with total revenues falling 2% to $8.56 billion, underperforming against analysts' expectations of $9.13 billion. This financial setback is compounded by a consumer boycott related to the company's legal action against a workers' union in Iowa, which has negatively impacted sales, particularly in the Middle East and the U.S. CEO Laxman Narasimhan acknowledged the challenges but remains optimistic about overcoming them.
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