As far as technology companies go, Starbucks Corporation (NASDAQ:SBUX) is likely to be about as far away from a technology company as one can get. The company’s focus for years has been on building out its bricks and mortar locations to be a "third place" for customers away from work and home to come and relax. This business is one which has obviously been hit hard as a result of the pandemic, and the company’s stock price decline following the onset of the pandemic looks to have been an overreaction in hindsight when one considers the leaps and bounds this company has made with its technology.
Specifically, the company’s shift to mobile order & pay, drive-thru business, and leveraging of AI to increase the company’s opportunities for upselling and cross-selling is impressive. This is reflected in the company’s forecast for sales growth in the 8-10% range and adjusted operating margins close to 20% through 2024 in its most recent 2020 investor day. These projections I think took the market by surprise, and appear to now be reflected in the company’s share price which has taken a nice jump off the initial pandemic selloff.
Starbucks is a company I’ve touted for quite some time, and the company’s technological advancements are just another reason investors ought to consider this stock as a core holding over the long-term. Staying invested (and buying the dips when they come) have proven to be very profitable for those with a buy-and-hold mentality.
Invest wisely, my friends.
Tech Insider
