Phases of COVID-19 crisis:
Early- to mid-March 2020:
Fear of the coronavirus outbreak spreading rapidly translates into
reality, with the number of cases accelerating globallyLate-March 2020 onward:
Social distancing measures + lockdownsApril 2020:
Fed stimulus suppresses near-term survival anxietyMay-June 2020:
Recovery of demand, with gradual lifting of lockdowns - no panic anymore despite a steady increase in the number of casesJuly-November 2020:
Weak Q2 and Q3 results, but continued
improvement in demand and progress with vaccine development buoy market sentiment
In view of the strong rally in Starbucks stock since late March, we believe that the stock has little room for growth in the near future even after factoring in an expected improvement in demand despite the recent surge in the number of new Covid-19 cases in the U.S.
