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Starbucks Shares Under Pressure Amid Concerning xAd Market Share Data

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Starbucks Shares Under Pressure Amid Concerning xAd Market Share Data
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Starbucks Corporation (NASDAQ: SBUX) shares plunged more than 1.2 percent Wednesday after Bloomberg published unfavorable data from xAd.

According to the reports, Starbucks’ market share shrunk by 1 percentage point in February amid heavy competition and problems with its mobile ordering system.

Java Under Pressure

The headline vaguely indicated that the company’s “share of the U.S. industry” declined from 12 percent to 11 percent, but the figures conflicted with other reports suggesting a 2016 share of 39.8 percent or 42 percent.

The latter figure came from Forbes, which also highlighted a 75-percent share in the “ready to drink” market as well as consistent revenue increases over the last four years.

Comparatively, Starbucks’ strongest competitor, Dunkin’ Brands Group Inc (NASDAQ: DNKN), maintained a 25-percent market share in 2016, according to the Forbes measurements.

Despite the testimonies to Starbucks’ dominance, investors were quick to react to the reports of xAd, which had not previously been known to influence stocks.

Shares were trading down 0.95 percent at the time of publication.

Related Link: Easier Comps Ahead For Starbucks

Related Link: Is Starbucks Becoming A Show-Me Story? Argus Downgrades Stock

Posted-In: Forbes xAdAnalyst Color News Restaurants Movers Media General Best of Benzinga

 

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