("Starbucks curbs 2017 revenue forecast after U.S. store visits drop," 2017) Contains information about the coffee company markets. The article particularly focuses on the Starbucks performance in January 2017 and proceeds to forecast the performance of the company's shares in February the same year. Despite the fact that the revenue data reflecting performance in January 2017 is true, the article exaggerates the downfall of the company's shares.
("Starbucks curbs 2017 revenue forecast after U.S. store visits drop," 2017) Predicted that the performance of the Starbucks stocks would fall drastically and that the SBUX.O NASDAQ would fall from 62 to 54 due to the problem of congestion in Starbucks stores in the United States. The graph assumes that all the other factors would remain constant. The article believes that the company management would not put in place measures to remedy the situation and reaffirm the consumers which would, as a result, increase the number of consumers’ visits. In the same manner, the prediction assumes that the consumer preference for decongested stores would remain constant, it is possible that the loyal Starbucks consumers would patiently wait for the company to sort out the issue of congestion. Stocks prices are mainly influenced by bad news about a company which is substantial enough to influence the demand for the company’s share. The issue of congestion may not be substantial enough to influence the demand for Starbucks Company.
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The graph presented in ("Starbucks curbs 2017 revenue forecast after U.S. store visits drop," 2017) is not based on historical data. To remedy the misrepresentation of information, the graph should use historical monthly share prices and monthly NASDAQ values of a sizeable data plotted in a scatter plot and an appropriate model devised to forecast the performance of the stocks in February 2017.
References
Starbucks curbs 2017 revenue forecast after U.S. store visits drop. (2017, January 27). Retrieved from https://ca.reuters.com/article/businessNews/idCAKBN15A2ZS
Appendix
Figure 1 : A graph indicating the performance of Starbucks stocks in February 2017 Retrieved from https://ca.reuters.com/article/businessNews/idCAKBN15A2ZS
