Three weeks ago, anti-Israel protestors destroyed a Starbucks
(SBUX) in a major demonstration in London. Why
was Starbucks a target of this political demonstration?
Well, CEO Howard Schultz is Jewish and has received awards for
his 'support of Israel.' That prompted a mass email and text
campaign stating that "Starbucks and McDonalds are donating their
next 2 weeks of earned revenue to Israel." It continued,
'Please boycott them and forward this message immediately."
Of course, it's ridiculous that a public corporation would
donate a significant amount of earnings directly to charity, let
alone to a highly divisive political event. But this message
apparently reached millions of potentially impressionable
people. It was started by an individual who wrote a satirical
piece, apparently critical of the Jewish CEO's pro Israel
involvement. But his fiction turned to fact for many.
So much so that this group of protestors felt the need to destroy a
Starbucks.
So three weeks later, how has this effected Starbucks'
stock?
It hasn't.
Apparently lies on the internet are not getting as far as some
would fear. Not only do we not have a Muslim president, but
we also do not have a Starbucks that sends profits to the Israeli
army. Outside of the fanatics, few seem to be paying
attention to these internet rumors. Both Starbucks and
McDonalds have outperformed the Dow Jones Industrials in the last
month despite the email campaign. It will be interesting to
see if they have any effect on earnings. After all, myths
have indeed been known to get around and become facts, and
thousands of years later people are still fighting over them.
Still, I wouldn't be too surprised if…