Three of the most cherished U.S. brands are struggling on the stock market. Their weak performance may prove temporary. Companies like Disney (DIS) and General Electric (GE) are examples of firms that recovered.
Starbucks (SBUX) impressed stock markets when it hired Chipotle’s (CMG) CEO. Brian Niccol has an impressive background in reinvigorating a company. Some of his turnaround ideas include simplifying Starbucks’ menu and increasing staff levels. The latter idea would increase expenses while improving customer satisfaction. Investors will not know until early next year if the turnaround works.
Boeing (BA) is trading at lows not seen since 2022. Its customers are fearful that the company’s plane doors will fall out mid-flight. More worrying is the worker strike. The union rejected a 35% wage increase. Boeing may need to cut more than 10% of staff to cover the higher staff costs.
Nike (NKE) trades at a 22.62 times price-to-earnings ratio. The stock fell for seven consecutive days. Despite announcing a deal with the National Basketball Association and the Women’s NBA, markets did not react. They do not believe that the sportswear supplier will reverse the 10.4% sales drop in the last quarter.
All three firms to prove to the market their worth. This is a tough task that is not impossible to achieve. However, it will need time to play out.
