I sold out of BROS (Dutch Bros Coffee) last year at a loss by making gains elsewhere because that stock was stuck in the $20-40 range for years after the interest rate hikes. Once Trump was elected, after it's earnings, it somehow spiked all the way to $85 or so. Completely ridiculous.
Point is, it's trading at around $65 right now and if Starbucks missed earnings, I'm tempted to buy puts on BROS, especially because it's a low float ticker that has the potential to make huge moves after earnings.
The way BROS has moved recently is ridiculous, hardly any reaction to tariffs and negative overall consumer sentiment.
I might have to look into their expected guidance last year but although tariffs likely wouldn't affect them directly unless they source their coffee beans from a tariffed country, the effect of tariffs on other discretionary consumer goods and food items would likely reduce their profits in the future.. who has time for $8 coffee when the price of everything else is rising?
Edit: Looking at SBUX the price hasn't moved because of CEO comments.. lmao. Market is operating on pure hopium
