Starbucks is considering selling a majority stake in its China business, with interest from 30 equity firms valuing it at $5-$10 billion. The move could provide cash infusion and allow the company to focus on revitalizing its domestic business under new CEO Brian Niccol. China currently accounts for 10% of Starbucks’ revenue, with plans to grow to 20,000 locations.
Meta, formerly Facebook, is making big investments in AI and eyewear. Meanwhile, Hershey has hired a new CEO. Earnings season is approaching, and investors should keep an eye out for potential opportunities. Motley Fool analysts discuss these topics in their latest podcast and provide insights on where to invest $1,000 now for potential high returns.
Investors looking to buy stock in Starbucks should consider that the company is exploring selling a majority stake in its China business. The move could provide a cash infusion and allow the company to focus on revitalizing its domestic business under new CEO Brian Niccol. China currently accounts for 10% of Starbucks’ revenue, with plans to grow to 20,000 locations. Investment experts discuss the potential of Chipotle under CEO Niccol, noting a premium multiple and operational improvements expected. Hershey names new CEO, Kirk Tanner, who faces challenges amid declining cocoa prices and shifting consumer preferences. Experts emphasize the need for new leadership to articulate a clear plan within a year for success. Lou Whiteman emphasizes the importance of broadening Hershey’s portfolio and executing new strategies under Tanner’s leadership. Investors are keeping a close eye on Meta’s big investments in AI and collaborations with companies like Es Luxottica for Ray-Ban AI glasses. With earnings season approaching, attention is turning to trends in tech spending, particularly in AI and advertising, which continues to drive Meta’s core business. Stay tuned for updates on earnings reports starting with JP Morgan on July 15th. This year has been marked by uncertainty for public companies, with many management teams unable to provide guidance. Investors are questioning if there is more clarity now than three months ago and if management teams will be more willing to take risks. The ongoing tariffs issue is adding to the uncertainty and may continue to impact earnings. Enterprise spending trends have shown elongated sales cycles, indicating that big enterprises are hesitant to commit to spending. Despite the uncertainty, business must go on, and finding a balance between caution and bold moves will be crucial.
Read more at Nasdaq: Starbucks’ China Challenge and Decoding Meta’s AI Push