Market Mad House

In individuals, insanity is rare; but in groups, parties, nations and epochs, it is the rule. Friedrich Nietzsche

Starbucks (NASDAQ: SBUX)

The Death Spiral

Can Starbucks (NASDAQ: SBUX) Survive?

I think Starbucks; like McDonalds (NYSE: MCD), is a real estate company. To explain Starbucks (NYSE: SBUX) or its licensees buy or lease prime real estate in high-traffic areas.

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Market Wisdom

Is Starbucks (SBUX) making Money?

Unfortunately, Amazon (NASDAQ: AMZN) is coming for Starbucks business. To explain, Amazon plans to spend several billion dollars to open over 3,000 GO convenience stores by 2021.

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Opportunities

Starbucks is the most Popular Payment App in America

Mobile payment use in the United States is a growing at a rate of 14.5% a year and it should reach 55 million by the end of 2018, eMarketer estimated. Around 25% or in four American smartphone users will make a mobile payment sometime this year.

Those numbers are big but they are nothing compared to China where Ant Financial’s Alipay has 520 million users, and Tencent Holdings’ WeChat has one billion active users, Bloomberg reported. Those people spent $2.9 trillion in the two ecosystems in 2016.

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Market Insanity

The Retail Apocalypse is Alive and Well

Giving Walmart workers an extra $8 or $9 a day might have little or no impact on the economy. Walmart clerks can now afford to buy lunch at In-N-Out Burger; rather than at McDonald’s, how does that benefit the wider economy? Much higher wages will be needed for a real economic stimulus.

It remains to be seen if the $1,000 bonus and wage hike will have any effect on Main Street. Giving average families an extra $1,000 to pay off $1,000 of their credit card debt, might not do much for the economy. The average U.S. household now owes $15,654 in credit-card debt, Nerdwallet estimated.

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Market Insanity

Can Starbucks Survive Expansion?

Starbucks (NASDAQ: SBUX) is planning a massive and ambitious expansion that might threaten the company’s future. The company already operates

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Stocks

Is Denny’s a Contrarian Restaurant Play?

The only people who should buy Denny’s stock are those looking for something to short. Everybody else should stay far away from this diner brand’s shares.

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Good Stocks

Starbucks the Value in the Coffee

America’s favorite coffee shop has reported revenue growth for the last 34 quarters; since September 2011, according to ycharts.

Starbucks reported revenues of $20.52 billion on June 30, 2016; just one year earlier it reported $18.43 billion in revenues. That adds up to $2.09 billion in revenue growth in year at a time when competitors like McDonald’s are struggling to maintain their market share.

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