Young people are dumping Starbucks ahead of earnings

  • Starbucks reports second-quarter earnings after Thursday’s closing bell.
  • People under the age of 30 have been turning their back Starbucks shares.
  • The recent racial profiling incident may be contributing to the selling.
  • Watch Starbucks trade in real-time here.

Starbucks shares may be losing some of their appeal, at least to those under the age of 30 investing on the Robinhood trading app. Young people have been selling shares 13% more than they’re buying ahead of Thursday’s earnings report, which is scheduled to drop after the closing bell.

“Investors were a lot more bullish ahead of the previous earnings report, buying SBUX 67% more than they were selling,” Robinhood Data Scientist Sahill Poddar told Business Insider in an email.

The recent racial-profile incident may have negatively influenced the 22nd most-held stock on Robinhood, according to Poddar.

This is the first time the coffee giant will face Wall Street following the viral arrests of two black men in one of its store two weeks ago. The two men were arrested for trespassing after asking to use the bathroom. Since the arrests, protests have broke out and the company announced every US store will be closed on May 29 to “conduct racial-bias education geared toward preventing discrimination in our stores.”

Wall Street analysts surveyed by Bloomberg expect Starbucks to report adjusted earnings of $US0.53 a share on revenue of $US5.93 billion.

Starbucks shares have gained 2% this year.

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