Goldman Sachs has spoken:
They have no issue with Starbucks missing revenue expectations by $100 million dollars last quarter. What’s a $100 million between friends, yes?
And by goodness, opening 200 stores in The People’s Republic of China, where internet news is banned and knockoffs are welcomed it good business, indeed!
Shares of the sugar drink dispensary are priced to gap up to $59 this morning, putting the shares into breakout territory after weeks of sideways consolidation. This morning’s move is predicated upon Goldman Sachs adding the company to their Conviction Buy List–so retail investors will have to stomach the uncertainty that said Conviction Listing may be an action Goldman used to help liquidate one of their institutional clients.
How investors react to the breakout, particularly whether or not buyers become initiative and drive the price higher from here, could be telling of the overall belief investors have in the continued growth of China’s middle class.
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