Ramish Cheema
3 min read
In This Article:
Starbucks Corporation (NASDAQ:SBUX) is one of the Jim Cramer Reveals Potential US Rare Earth Trump Card & Discusses These 11 Stocks.
Starbucks Corporation (NASDAQ:SBUX), particularly due to its CEO Brian Niccol, is one of Cramer’s top stocks. Niccol is currently in the midst of a turnaround strategy at the firm. Cramer’s previous remarks about Starbucks Corporation (NASDAQ:SBUX) have seen him stress to investors to give Niccol a chance and not write off the firm too soon. Another aspect of the firm that’s caught his attention is China. Starbucks Corporation (NASDAQ:SBUX)’s business in China leaves it vulnerable to actions against American firms by the Chinese. Additionally, the firm is also struggling to grow its sales in China as it struggles to compete in a tea-drinking nation that’s facing an inflationary pinch. So naturally, Cramer was enthused by reports of Starbucks Corporation (NASDAQ:SBUX) reducing prices in China:
“[On cutting prices in China] I think it’s a brilliant move. They’re way off the mark!”
In his previous comments about Starbucks Corporation (NASDAQ:SBUX), Cramer discussed earnings reaction and the China business:
“Last quarter, Starbucks, Brian Niccol, people thought he laid an egg. It was awful. Stock broke to 75. We stuck by it, David, and I just think this is what happens if you stick by quality management with a quality product. This morning, the FT has a piece that says Starbucks had received a lot of interest, according to Brian Niccol, in the sale of a stake in the China business and it’s very very bullish and it talks about how there are a number of people who would like to buy a stake. The good news, they’ve got a lot of interest, a lot of interest, said Niccol and I’m going to leave it to you on your M&A front to see well what could this mean. But I think that it’s very positive.
A barista pouring freshly brewed coffee from an espresso machine to a cup in a bustling cafe.
“I thought that you [David Faber] would like to hear that. Because what it says is that this man is taking action. He’s not just sitting back and saying I’m going to get my head beat in. So I really, really like this story. 7,758 stores. I like the call. I think it’s a buy. There you go.”
While we acknowledge the potential of SBUX as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and have limited downside risk. If you are looking for an extremely cheap AI stock that is also a major beneficiary of Trump tariffs and onshoring, see our free report on the best short-term AI stock.
