Yesterday, we saw how coffee giant Starbucks (SBUX) landed a hefty upswing in share prices thanks to cross-promotional efforts. Now, it will try to make lightning strike twice by forging a new connection with online computer retailer Newegg (NEGG). Investors were very much in favor of this notion, and gave Starbucks shares nearly 3% extra value in Tuesday afternoon’s trading.
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So Newegg, likely sensing that people were going to be annoyed by the idea that 128 gigabytes of DDR5 RAM now runs a whopping $1,459, got together with Starbucks to soften the blow a bit. In so doing, Newegg is bundling that pricey chunk of memory with a $50 Starbucks gift card. The idea is that you can “drink coffee while you game,” which for many players will probably be a terrible idea. The last thing some players need is $50 worth of Starbucks coffee running through their veins as they game.
But the idea remains a decent one. Trying to convince users to pay outrageous prices for RAM in the middle of a surge in costs by offering a comparatively low-priced bargain add-on makes sense, and might well tip some gamers who thought they needed RAM anyway, so why not get free coffee alongside it?
Huge Winter Ahead
And, for those gaming and drinking coffee at the same time, Starbucks is set to offer a wide range of new options for the winter. First, there is, once again, the return of Bearista, but not in a fashion you probably wanted. The Bearista will return as a charm for the Lunar New Year and Valentine’s Day seasons. It will be dressed as a horse, which may sound baffling, until you remember that this is the Year of the Horse in China.
A range of new drinks will also be available, with Dubai Chocolate for a limited time, and pistachio permanently added. Several pistachio drinks are on deck, including the Cortado, the Cream Cold Brew, and the Cream Frappuccino, among others.
Is Starbucks Stock a Good Buy?
Turning to Wall Street, analysts have a Moderate Buy consensus rating on SBUX stock based on 12 Buys, seven Holds, and two Sells assigned in the past three months, as indicated by the graphic below. After a 6.76% loss in its share price over the past year, the average SBUX price target of $95 per share implies 6.96% upside potential.
