This Coffee Giant’s Next Move Could Brew a Big Turnaround

A global coffee leader is revamping its strategy with fresh leadership and sharper cost controls.

The next test is whether these moves can drive a true turnaround, and investors are watching closely.

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Pinterest Inc. | PINS

Price: $36.09

Pinterest delivered 17% year-over-year revenue growth to $998M in Q2, alongside a record 578M monthly active users.

Yet, shares tumbled more than 10% after EPS missed forecasts, a reminder of how skittish markets are on digital ad names.

BMO’s Brian Pitz lifted his target to $41, citing solid execution, strong Gen Z adoption, and expanding AI tools for advertisers.

Pinterest’s Performance+ platform allows brands to preview and optimize campaigns in real time, driving better ROI in an otherwise cautious ad market.

Still, international ad pricing remains a drag, with rates in some regions 25% lower than expected.

Financially, adjusted EBITDA surged 33% to $251M, showing operating leverage despite heavier R&D spending.

Investors may be underestimating the platform’s unique positioning in visual commerce, where intent-driven discovery could give it an edge over larger rivals.

Why It Matters:
The selloff looks like an overreaction. Pinterest continues to grow users and improve monetization, with AI as a long-term catalyst.

If margins expand in 2026 as planned, the stock may prove undervalued at current levels.

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Joby Aviation Inc. | JOBY

Price: $16.06

Joby Aviation is riding a wave of excitement in the electric air taxi market, even after a recent pullback from its highs.

The stock has more than doubled in 2025, buoyed by milestones like completing the first piloted eVTOL flight between two U.S. airports.

The company hopes to secure FAA certification and launch commercial operations as soon as next year, with partnerships already in place with Toyota, Delta, and Virgin Atlantic.

Analysts see the global eVTOL market swelling from $1B in 2023 to nearly $29B by 2030.

That backdrop helps explain Joby’s $14B valuation, though it also raises questions about whether expectations are too far ahead of reality.

The latest earnings showed the challenge: just $20K in revenue versus forecasts of $1.5M, and a wider loss per share than expected.

Still, firms like Needham remain bullish, citing technical credibility and a first-mover advantage.

Why It Matters:
Joby offers huge potential in a transformative industry, but the stock is priced for success.

Investors need to weigh the allure of growth against the risks of execution, certification delays, and intense competition.

Tapestry Inc. | TPR

Price: $99.87

The owner of Coach, Kate Spade, and Stuart Weitzman delivered another solid quarter, with EPS of $1.04 beating estimates and revenue climbing 8.3% to $1.72B.

Management raised its full-year guidance to $5.30–$5.45 EPS and lifted its quarterly dividend to $0.40.

Wall Street remains bullish: JPMorgan has a $145 target, while Bernstein recently reiterated “outperform” at $112.

Institutional investors are piling in too, with hedge funds now owning over 90% of the float.

Tapestry has benefited from strong demand in accessories and disciplined cost control, while expanding internationally to offset softness in North America.

With a P/E ratio still lofty at 122, valuation is stretched — but consistent execution and a higher dividend payout may justify it.

Why It Matters:
Tapestry is proving that luxury at scale can still grow, even amid a choppy consumer backdrop.

Investors looking for exposure to affordable luxury with a strong capital-return story may find TPR compelling despite its high multiple.

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Under Armour Inc. | UA

Price: $99.87

Under Armour has struggled to turn revenue into profit, with EBIT and EBITDA margins still negative.

Shares are down over 30% this year, though they bounced recently after insider buying and renewed investor interest.

Q1 revenue came in at $1.13B, short of estimates, with EPS at $0.02. Gross margin held near 48%, showing pricing power, but net margin remains weak at just under 2%.

Liquidity looks stable, yet the company added $400M in long-term debt to shore up operations.

CEO Kevin Plank continues to push innovation and operational discipline, while insiders like Director Dawn Fitzpatrick are signaling confidence through stock purchases.

Still, Bank of America recently cut its target to $6.50, highlighting ongoing tariff pressures and fragile margins.

Why It Matters:
UA remains a turnaround story in progress.

With strong brand equity but persistent profitability challenges, the stock is more suitable for speculative investors betting on a successful execution of its restructuring.

Starbucks Corp. | SBUX

Price: $92.56

Starbucks shares have lagged badly this year, down nearly 17% in the past six months.

But Jefferies’ recent upgrade to “Buy,” with a price target raised to $115 from $100, signals rising confidence in a turnaround under new CEO Brian Niccol.

The plan hinges on revamping U.S. store operations, with a focus on speed of service, improved hospitality, and better labor management.

Niccol, who previously steered Chipotle through its own turnaround, is betting that operational fixes will lift margins back toward the 17% levels Starbucks enjoyed in 2019, compared with just 10% today.

The stock’s valuation has compressed to under 40x earnings, with a 2.7% dividend yield. Analysts expect stronger visibility in coming quarters as cost-saving initiatives and store-level investments begin to show up in earnings.

With its brand power, global footprint, and loyal rewards members, Starbucks has levers to pull if execution improves.

Why It Matters:
For long-term investors, this setup reflects classic turnaround math: depressed margins, low sentiment, and a credible plan for improvement.

If Niccol can deliver, Starbucks could see both earnings and its multiple expand.

From coffee chains to air taxis, this week’s stories share a theme: execution matters more than narrative.

Starbucks and Under Armour are leaning on leadership changes to engineer turnarounds. Pinterest and Tapestry are proving fundamentals can diverge sharply from stock reactions.

And Joby is testing the limits of how much future potential markets will price in today.

For investors, the lesson is to focus on fundamentals, monitor execution closely, and be selective in chasing stories where sentiment has swung too far in either direction.

Stat of the Day
6.58% — That’s the average U.S. 30-year fixed mortgage rate, now at its lowest level of 2025.

While affordability remains stretched, the dip offers a potential window for buyers, and a hint of relief in a housing market stuck near three-decade lows for sales.