Game of Throne’s clanger hands Starbucks (SBUX, $78.02) free advertising worth billions
It's rumored that American coffee giant Starbucks garnered an estimated $2.3 billion in free advertising when a similar looking coffee cup was spotted in one of the episodes of the HBO fantasy epic ‘Game of Thrones.' It was later revealed, however, that it was just a craft services cup!
Close viewers could easily spot a cup incongruous to the setting of the drama and though the label was muddled in the show, within hours the speculation that it could be a Starbucks cup went viral on social media.
Following this coffee cup hullabaloo, analysts tallied 10,627 mentions of Starbucks coffee and ‘Game of Thrones’ together across different online, TV and radio broadcasts across the world. Separately, social media and monitoring platforms like Talkwalker counted more than 193,000 mentions within 48 hours on social media platforms like Twitter.
Experts say it's impossible to quantify how much free advertising Starbucks gets out of this, but they were all unanimous to agree on the power of Starbucks brand. But in reality, public response has more been to HBO’s mistake on placing that cup on the sets than on the coffee cup itself.
If the cup were a product placement, then it would have cost six figures. But since HBO is not ad-supported, advertisers typically do not pay for product placement but supply the product to the show offsetting the cost of production rather than pay a flat fee for their products to appear. And all of this came free to Starbucks thanks to HBO’s silly mistake!
The 5th May episode of Game of Thrones drew 11.8 million viewers for its first airing, down ~2% from the prior week.
SBUX in downward trend: 10-day moving average crossed below 50-day moving average on May 24, 2023
The 10-day moving average for SBUX crossed bearishly below the 50-day moving average on May 24, 2023. This indicates that the trend has shifted lower and could be considered a sell signal. In of 16 past instances when the 10-day crossed below the 50-day, the stock continued to move higher over the following month. The odds of a continued downward trend are .
Technical Analysis (Indicators)
Bearish Trend Analysis
The Momentum Indicator moved below the 0 level on May 19, 2023. You may want to consider selling the stock, shorting the stock, or exploring put options on SBUX as a result. In of 89 cases where the Momentum Indicator fell below 0, the stock fell further within the subsequent month. The odds of a continued downward trend are .
The Moving Average Convergence Divergence Histogram (MACD) for SBUX turned negative on May 03, 2023. This could be a sign that the stock is set to turn lower in the coming weeks. Traders may want to sell the stock or buy put options. Tickeron's A.I.dvisor looked at 53 similar instances when the indicator turned negative. In of the 53 cases the stock turned lower in the days that followed. This puts the odds of success at .
SBUX moved below its 50-day moving average on May 22, 2023 date and that indicates a change from an upward trend to a downward trend.
Following a 3-day decline, the stock is projected to fall further. Considering past instances where SBUX declined for three days, the price rose further in of 62 cases within the following month. The odds of a continued downward trend are .
The Aroon Indicator for SBUX entered a downward trend on May 30, 2023. This could indicate a strong downward move is ahead for the stock. Traders may want to consider selling the stock or buying put options.
Bullish Trend Analysis
The RSI Indicator shows that the ticker has stayed in the oversold zone for 4 days. The price of this ticker is presumed to bounce back soon, since the longer the ticker stays in the oversold zone, the more promptly an Uptrend is expected.
The Stochastic Oscillator shows that the ticker has stayed in the oversold zone for 4 days. The price of this ticker is presumed to bounce back soon, since the longer the ticker stays in the oversold zone, the more promptly an upward trend is expected.
Following a 3-day Advance, the price is estimated to grow further. Considering data from situations where SBUX advanced for three days, in of 337 cases, the price rose further within the following month. The odds of a continued upward trend are .
SBUX may jump back above the lower band and head toward the middle band. Traders may consider buying the stock or exploring call options.
Fundamental Analysis (Ratings)
The Tickeron SMR rating for this company is (best 1 - 100 worst), indicating very strong sales and a profitable business model. SMR (Sales, Margin, Return on Equity) rating is based on comparative analysis of weighted Sales, Income Margin and Return on Equity values compared against S&P 500 index constituents. The weighted SMR value is a proprietary formula developed by Tickeron and represents an overall profitability measure for a stock.
The Tickeron Valuation Rating of (best 1 - 100 worst) indicates that the company is seriously undervalued in the industry. This rating compares market capitalization estimated by our proprietary formula with the current market capitalization. This rating is based on the following metrics, as compared to industry averages: P/B Ratio (0.000) is normal, around the industry mean (8.561). P/E Ratio (31.746) is within average values for comparable stocks, (162.858). Projected Growth (PEG Ratio) (1.601) is also within normal values, averaging (2.142). Dividend Yield (0.021) settles around the average of (0.032) among similar stocks. P/S Ratio (3.313) is also within normal values, averaging (50.687).
The Tickeron PE Growth Rating for this company is (best 1 - 100 worst), pointing to outstanding earnings growth. The PE Growth rating is based on a comparative analysis of stock PE ratio increase over the last 12 months compared against S&P 500 index constituents.
The Tickeron Profit vs. Risk Rating rating for this company is (best 1 - 100 worst), indicating low risk on high returns. The average Profit vs. Risk Rating rating for the industry is 86, placing this stock better than average.
The Tickeron Price Growth Rating for this company is (best 1 - 100 worst), indicating fairly steady price growth. SBUX’s price grows at a lower rate over the last 12 months as compared to S&P 500 index constituents.
Notable companies
Industry description
Market Cap
High and low price notable news
Volume
Fundamental Analysis Ratings
The average fundamental analysis ratings, where 1 is best and 100 is worst, are as follows
General Information
a producer of coffee and tea
Industry Restaurants
SBUX and
Correlation & Price change
A.I.dvisor indicates that over the last year, SBUX has been closely correlated with YUM. These tickers have moved in lockstep 69% of the time. This A.I.-generated data suggests there is a high statistical probability that if SBUX jumps, then YUM could also see price increases.
| Ticker / NAME | Correlation To SBUX | 1D Price Change % | ||
|---|---|---|---|---|
| SBUX | 100% | -0.79% | ||
| YUM - SBUX | 69% Closely correlated | -1.59% | ||
| DRI - SBUX | 59% Loosely correlated | -0.56% | ||
| SHAK - SBUX | 55% Loosely correlated | -0.41% | ||
| EAT - SBUX | 54% Loosely correlated | -4.16% | ||
| CNNE - SBUX | 53% Loosely correlated | +0.15% | ||
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