Starbucks Is Back, But Is It a Buy?

The podcast analyzes recent earnings reports from Starbucks and General Motors, questioning their investment potential despite operational improvements. Starbucks' global and U.S. comparable sales increased by 4%, driven by a 3% rise in traffic, with China growing 7%. However, the company is sacrificing immediate profit for long-term growth, investing in wages and technology. The panel doubts Starbucks' long-term market-beating growth potential, especially with the shift to an asset-light international model. For General Motors, while net income declined due to special charges for EV capacity realignment and restructuring in China, revenue reached $185 billion, driven by internal combustion engine vehicles. GM's progress in autonomy, aiming for "eyes off" technology in Cadillac Escalades by 2028, and significant share buybacks are also discussed, though its market performance lags behind the S\&P 500. The discussion concludes with an analysis of the rising prices of silver and gold, attributing it to a weak dollar and diversification by central banks and institutional investors.