Starbucks (SBUX) Plunges 6.02% on Tariff Fears, Analyst Downgrades

On April 4, 2025, Starbucks' stock experienced a significant drop of 6.02% in pre-market trading, reflecting a notable decline in investor sentiment.

Bernstein, a prominent investment research firm, has revised its target price for Starbucks from $115 to $105, citing concerns over potential disruptions due to new tariff policies announced by President Trump. This adjustment comes as investors grapple with the implications of "reciprocal tariffs" on all U.S. imports, which could impact Starbucks' supply chain and operational costs.

Groupama Asset Management has also reduced its stake in Starbucks by 29.8% during the fourth quarter, further adding to the bearish sentiment surrounding the stock. This move by a major institutional investor suggests a cautious outlook on the company's near-term prospects.

Additionally, Starbucks' stock has crossed below its 200-day moving average, a technical indicator that often signals a shift in market sentiment. This development, coupled with the recent tariff concerns, has contributed to the stock's decline, as investors reassess their positions in the company.