Starbucks Stock Plunge Cheered Amid Pro-Palestinian Boycott

News that Starbucks share prices took a tumble has been welcomed by some on social media as the coffee company faces boycotts from pro-Palestinian supporters.

The stock dropped more than 10 percent in after-hours trading on Tuesday after Starbucks released its Q2 earnings report, which revealed weak sales and profits. Starbucks chief financial officer Rachel Ruggeri described it as a "difficult quarter." It comes as the world's largest coffee chain has faced boycotting calls on social media from pro-Palestinian supporters over its perceived support for Israel.

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Newsweek emailed Starbucks for comment on this story. In the past, the company has said it "condemn[s] violence, the loss of innocent life and all hate and weaponized speech."

Following Tuesday's share-price plunge, one X (formerly Twitter) post read: "Starbucks suffers more bad sales and its stock keeps crashing! Before the boycott Starbucks was trading around $110 per share it is down over 30% currently down approximately $35 per share!!! To put things into perspective Starbucks is down around $30 BILLION DOLLARS."

The post included a screenshot of a chart tracking the Starbucks share price falling, overlayed with a smiling emoji.

"Keep boycotting," another user said, a sentiment that was repeated by others.

Under another post detailing the price drop, one user replied, "I'll celebrate when they are bankrupt globally."

A user calling themselves Dr. Freddie and whose X bio said they were a Palestinian-American said Starbucks "messed up."

"Nobody likes burnt coffee with a side of genocide, apparently," was another response.

South Africa has accused Israel of committing genocide against Palestinians in Gaza. Israel has strongly rejected the allegation and U.S. Secretary of State Antony Blinken has called South Africa's allegations "meritless."

Tuesday's earnings report showed that Starbucks' net revenue was down two percent to $8.6 billion, with sales dropping by three percent.

International net revenues declined five percent from the same quarter a year ago, in part due to a six percent decline in store sales.

"In a highly challenged environment, this quarter's results do not reflect the power of our brand, our capabilities or the opportunities ahead," stated Starbucks CEO Laxman Narasimhan in a press release.

"It did not meet our expectations, but we understand the specific challenges and opportunities immediately in front of us."

Starbucks is not the only prominent company that has released disappointing earnings amid boycotts related to the conflict between Israel and Hamas.

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On Tuesday, McDonald's reported a 0.2 percent fall in earnings, driven in part by declining sales overseas where in some markets the company has also been facing boycotts. The fast-food giant was criticized for providing free meals to the Israeli army following the October 7 Hamas attack.