Jim Cramer is making a bold contrarian call on two major stocks battered by tariff concerns and management missteps. The CNBC host believes Starbucks and Nike represent compelling buying opportunities despite their current challenges, arguing that both fundamentally sound businesses have been knocked down for macro reasons that don’t touch their core operations. With both companies offering 2-3% dividends while investors wait for multi-year turnarounds to play out, Cramer sees the current weakness as a prime entry point for patient investors.
about Cramer's 2 Tariff-Hit Stock Picks: Buy Opportunity
SBUX
Starbucks Secret AI Barista: Turnaround Gamble or Gimmick?
Starbucks CEO Brian Niccol has revealed the company is developing a secret AI barista system to predict customer orders in real time. This comes as the coffee chain struggles with declining stock performance and operational challenges. Critics question whether this technology can succeed where other turnaround efforts have failed.
about Starbucks Secret AI Barista: Turnaround Gamble or Gimmick?Starbucks AI Barista: Bubble Fears vs. Smart Evolution
Starbucks CEO Brian Niccol has declared the coffee giant “all in on AI,” deploying barista assistants and order optimization systems across its 38,000 stores. This ambitious push comes as a McKinsey survey reveals 80% of companies see no return on their AI investments, raising questions about whether Starbucks’ technological embrace signals an AI bubble or represents smart operational evolution in an increasingly competitive market.
about Starbucks AI Barista: Bubble Fears vs. Smart EvolutionTrump Administration’s Corporate Stakes Reshape US Economy
The Trump administration has quietly accumulated significant ownership positions in key American corporations, from rare earth providers to defense contractors, creating what analysts describe as a government version of Warren Buffett’s Berkshire Hathaway. This unprecedented investment strategy aims to protect strategic industries, influence corporate decisions, and secure American jobs through direct equity stakes in companies including MP Materials, Intel, U.S. Steel, and Lithium Americas. The approach represents a fundamental shift in government-business relations, with national security and economic competitiveness taking precedence over traditional market principles.
about Trump Administration's Corporate Stakes Reshape US EconomyStarbucks CEO Under Pressure as Earnings Loom
Starbucks faces mounting pressure as disappointing earnings expectations and declining same-store sales threaten to further erode shareholder value. CEO Brian Niccol’s leadership is being questioned amid store closures and strategic shifts, prompting speculation about potential successors.
about Starbucks CEO Under Pressure as Earnings LoomSCHD ETF Sentiment Turns Negative as Investors Sour
The Schwab US Dividend Equity ETF (SCHD), once a darling of income investors managing $72 billion in assets, is facing growing criticism from its shareholder base. October has marked a significant shift in sentiment as investors question the fund’s recent performance, with social media platforms revealing mounting frustration over the ETF’s stagnant returns compared to broader market indices like the Nasdaq’s 19% year-to-date gain.
about SCHD ETF Sentiment Turns Negative as Investors SourWhy One Investor Dumped SCHD for Diversified Portfolio
A Redditor’s decision to sell their largest holding, the Schwab U.S. Dividend Equity ETF (SCHD), highlights a strategic shift toward greater portfolio diversification. The move reflects a growing recognition that single-ETF concentration may not align with long-term financial goals, particularly given SCHD’s requirement of approximately $2 million to generate $80,000 annually and its limited capital appreciation potential.
about Why One Investor Dumped SCHD for Diversified Portfolio2 Safer Dividend Stocks for October Market Volatility
As October approaches with historical market weakness potentially following September’s unexpected strength, investors are seeking defensive positions with reliable dividends. With experts like Leon Cooperman and Jeremy Grantham questioning the longevity of the current rally, General Mills and Starbucks emerge as compelling value plays offering attractive yields and turnaround potential. Both stocks provide potential shelter from volatility while delivering income during uncertain market conditions.
about 2 Safer Dividend Stocks for October Market VolatilityStarbucks $1B Restructuring: Can Niccol Fix Coffee Giant?
Starbucks is implementing a drastic $1 billion restructuring plan under CEO Brian Niccol, marking the latest and most significant attempt to reverse six consecutive quarters of declining same-store sales. The strategy, which includes closing 500 underperforming stores and a major operational simplification, aims to refocus the global coffee giant on its core identity amid intense competition and shifting consumer habits. This move underscores the profound challenges facing a brand once synonymous with unstoppable growth.
about Starbucks $1B Restructuring: Can Niccol Fix Coffee Giant?Starbucks to Close 1% of Stores, Cut 900 Jobs in Turnaround
Starbucks Corp. is accelerating its turnaround strategy with plans to close 1% of its stores in the U.S. and Canada and eliminate 900 jobs, signaling a shift from cosmetic changes to more substantial restructuring under CEO Brian Niccol. The move, which follows Niccol’s initial focus on operational tweaks like reintroducing ceramic mugs, aims to right-size the world’s largest coffee chain amid growing analyst skepticism about its premium pricing and competitive positioning. While investors showed little reaction to the announcement, Melius Research analyst Jacob Aiken-Phillips warned the revival effort “still has a long way to go” and fails to address core affordability concerns in today’s challenging economic environment.
about Starbucks to Close 1% of Stores, Cut 900 Jobs in TurnaroundStrong Jobs Data Sparks Market Jitters, Stocks Mixed
Better-than-expected unemployment data has rattled investors, signaling a resilient economy that may delay Federal Reserve rate cuts. The S&P 500 dipped premarket as strong economic indicators contrasted with mixed corporate earnings. Starbucks restructuring and disappointing results from CarMax added complexity to the jobs market narrative, creating a volatile trading environment on September 25.
about Strong Jobs Data Sparks Market Jitters, Stocks MixedStarbucks CEO Niccol’s Turnaround Struggles After One Year
Starbucks CEO Brian Niccol completes his first year at the helm with disappointing results. The company’s stock has significantly underperformed the market while comparable sales continue to decline. Niccol’s various initiatives have yet to demonstrate meaningful progress in his promised transformation.
about Starbucks CEO Niccol's Turnaround Struggles After One Year