QRFT0.260%
as of Jul 8
SBUX
GrowthSTARBUCKS CORP
Starbucks Corporation, together with its subsidiaries, operates as a roaster, marketer, and retailer of coffee internationally. The company operates through three segments: North America, International, and Channel Development. Its stores offer coffee, tea, and other beverages, roasted whole beans and ground coffees, complementary food, packaged coffees, single-serve products, and ready-to-drink beverages; and various food products, such as pastries, breakfast sandwiches, and lunch items.
Close · 3M
+5.05%
Held by 2 AI ETFs
AIEQ0.050%
as of Jul 20
Signal performance
Each tracked ETF's moves on this stock, grouped by fund. Returns are measured from the signal date to the latest close — hypothetical, no commissions or slippage.
Buy signals3
Win rate67% (2/3)
Avg buy return+2.45%
QRFT · Weight decrease · 2d
SBUX currently trades at $102.19, sitting at 96% of its 52-week high, a position reached despite a recent -4.1% 30-day return that followed positive 90-day and 1-year performance. QRFT's AI, which incorporates traditional factors like value and momentum alongside proprietary alternative-data overlays, likely assessed this proximity to the yearly peak as a point for tactical adjustment. Considering SBUX's PER of 78.76 and PBR of 64.12, the fund's model may have indicated that the current valuation was stretched relative to its 5.84% revenue growth, despite a high ROE of 115.68%. Consequently, the weekly rebalancing mechanism prompted a consecutive decrease in SBUX's weight within QRFT, from 0.2700% to 0.2500% over the last few trading days of June, signaling a measured reduction in exposure as the stock hovered near its historical highs.
weight 0.270% → 0.250% (-0.020 pp)·stock up 3.1% in the 30 days before
Jun 30·entry $102.19·now $104.81
+2.56%
since Jun 30
QRFT · Weight increase · 2d
QRFT gradually increased its allocation to Starbucks from 0.24% to 0.26% over three consecutive trading days, demonstrating precise, incremental adjustments rather than an abrupt shift in conviction. This measured approach by the Qraft AI-driven strategy occurs as SBUX trades at $98.76, near its 52-week high, yet it follows a recent 30-day return of -6.4% after solid 90-day and 1-year gains of +7.7% and +17.5% respectively. The fund’s methodology, which integrates traditional factors like momentum and quality with proprietary alternative data overlays, likely interprets the current price as a temporary pullback within an established longer-term uptrend. Starbucks' high ROE of 115.68% may satisfy quality metrics, while specific alternative data could be signaling underlying strength in consumer behavior for the Consumer Discretionary company, prompting the AI to add to the position incrementally within its broad large-cap core mandate.
weight 0.240% → 0.260% (+0.020 pp)·stock down 6.6% in the 30 days before
Jun 10·entry $98.76·now $104.81Drifting
+6.13%
since Jun 10
QRFT · New entry · 1d
The AI ETF likely initiated a position in Starbucks due to its exceptionally high Return on Equity of 115.68%, signaling superior profitability and efficient use of shareholder capital, despite the seemingly stretched PER and PBR ratios. This highlights that AI models may prioritize strong underlying business efficiency over traditional valuation metrics, prompting retail investors to investigate the drivers of such high ROE and its sustainability before making similar investment decisions.
weight 0 → 0.260% (new)·stock up 16.2% in the 30 days before
May 4·entry $104.97·now $104.81Fresh
-0.15%
since May 4
AIEQ · New entry · 1d
weight 0 → 0.050% (new)·stock up 7.1% in the 30 days before
Jul 1·entry $103.39·now $104.81Fresh
+1.37%
since Jul 1
AIEQ · Exit · 1d
Amplify ETFs' AIEQ, which uses IBM Watson NLP to process vast datasets for its daily ranking across 140-180 US stocks, removed Starbucks from its portfolio on May 30th. Operating with a fundamentals and sentiment hybrid style, the fund likely detected a negative shift in its daily assessment of SBUX, whether from news, filings, or social commentary. This reevaluation, occurring at a current price of $99.16, potentially flagged the company's valuation metrics, such as a high PER of 75.56, as unsustainable given the updated sentiment or fundamental outlook. The fund's rapid rebalancing cadence allows it to swiftly divest holdings when its proprietary AI models identify such changes in a stock's investment profile.
weight 0.200% → 0 (exited)·stock down 6.0% in the 30 days before
May 30·entry $96.51·now $104.81
+8.60%
since May 30
Sell signals show what the stock did after the AI exited. A negative number means the AI's exit was well-timed.
Buffett-style framework
Fails the frameworkas of May 31
AI ETF AIEQ recently exited its position in Starbucks, a move that aligns with this framework's 'Fail' verdict primarily due to the lack of a margin of safety and insufficient financial health data. Conversely, QRFT maintains a small holding, suggesting a different investment thesis that tolerates the current valuation or factors in other growth aspects not central to a strict value-investing approach.
- Circle of CompetenceStarbucks' business of selling coffee and related products through a global retail footprint presents unit economics stable enough for reasonable long-term cash flow projections.
- Economic MoatStarbucks benefits from a powerful global brand and significant scale advantages in sourcing and distribution, creating a durable economic moat.
- ManagementSpecific data on management candor, capital allocation track record (beyond general operations), and 'skin in the game' is not provided, preventing a definitive assessment of this criterion.
- Financial HealthWhile the most recent ROE of 115.68% is exceptionally high, the lack of 10-year average ROE, operating margin trends, debt details, and owner earnings data prevents a comprehensive assessment of financial health according to the framework's criteria.
- Margin of SafetyWith a PER of 75.56, PBR of 64.12, and EV/EBITDA of 58.71, the current market price reflects a very optimistic future, offering no discernible margin of safety to a conservative estimate of intrinsic value.
While Starbucks operates within a predictable circle of competence and possesses a strong brand-driven economic moat, the absence of comprehensive financial data to confirm long-term health metrics like consistent ROE, combined with a significantly elevated valuation that offers no margin of safety, leads to an overall 'Fail' verdict. The business quality aspects are appealing, but the financial metrics and current price fall short of the demanding value investing criteria.
Educational interpretation generated by AI applying frameworks Warren Buffett documented in his shareholder letters and other public writings. Not a statement by Mr. Buffett or Berkshire Hathaway, and not investment advice.