Last June, Starbucks (NASDAQ:SBUX) cut its earnings guidance for fiscal 2018 and warned investors about a significant slowdown in comp sales growth — particularly in China, one of the coffee giant’s key growth markets. That news caused Starbucks stock to plunge. The share price bottomed out below $50 in late June.
At the time, I wrote that the slowdown was likely to be temporary, creating a buying opportunity for long-term investors. But I still wasn’t prepared for what came next. Starbucks stock has gone on a massive run over the past 10 months, rising about 60% from its nadir.