Starbucks Soars 25%: Do You Believe in Investing in People or Data?

On August 13th, $Starbucks(SBUX)$ surged by 25%, pushing its total market value above $100 billion.

The primary reason for the stock's significant rise is Starbucks' announcement that Brian Niccol will be appointed as Chairman and CEO, starting his new role on September 9, 2024.

Who is Brian Niccol? Why did he bring a 25% rise in a single day?

Brian Niccol is currently the Chairman and CEO of $Chipotle Mexican Grill(CMG)$, a publicly traded multinational restaurant chain in the U.S., with 3,500 restaurants as of June 30, 2024.

Under his leadership, Chipotle's revenue nearly doubled, profits increased by nearly sevenfold, and its stock price soared by almost 800%.

During his tenure, Brian "transformed Chipotle" by focusing on talent and culture, brand and menu innovation, operational excellence, and digital transformation, setting new industry standards. He also raised wages for retail team members, enhanced benefits, and strengthened corporate culture.

Yesterday's surge indicates that the market highly values this CEO's ability to lead and transform a company.

Do you invest in people or data?

Investing in $Tesla Motors(TSLA)$ and $NVIDIA Corp(NVDA)$ may also imply a strong belief in the capabilities of their CEOs.

• Even though Tesla's stock once fell to $135 this year, Elon Musk managed to pull it back above $200 with expectations around FSD (Full Self-Driving) and robotaxi.

• Jensen Huang, with his remarkable foresight, led Nvidia to capitalize on every major trend in the stock market.

If you focus more on data, you might be more concerned with a company's valuation and excel at buying undervalued companies.

What’s your investing style?

Do you invest in people or data?

Do you believe in Brian’s ability in boosting $Starbucks(SBUX)$ stock prices?

What’s your target price for $Starbucks(SBUX)$?

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