Starbucks, the coffeehouse chain, has reportedly lost around $38 billion in market value since calls for boycotts emerged following Israel's war on Gaza, according to Bloomberg data.
Pressure intensified on the American company's stock with the announcement of its financial results for the first quarter of 2024, which marked its first quarterly sales decline in over three years.
This led to a 16% drop in its share price during the first trading session following the disclosure of the results on May 1.
The boycott against Starbucks emerged in response to the company's perceived stance during the conflict between Israel and Gaza.
Critics accused Starbucks of having ties to Israel or not taking a clear stand against the conflict, leading to calls for a boycott of its products.
Such boycotts often have significant financial implications for companies, impacting their market value and public image.
In this case, Starbucks faced substantial losses in market value as a result of the boycott, highlighting the importance of corporate social responsibility and public perception in today's global market.
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