The Rundown Starbucks Profit Drop 50%, Waymo Partners with Toyota
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Apr 30, 2025 Recent economic trends reveal a 0.3% contraction in GDP, raising concerns about consumer spending and imports. Starbucks faces a staggering 50% drop in profits driven by declining sales and restructuring challenges. Meanwhile, innovative collaborations are emerging, such as Waymo teaming up with Toyota to advance self-driving technology. Amidst these shifts, stock performances of companies like Caterpillar and Snap are also examined, spotlighting the dynamic intertwine of technology and market fluctuations.
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GDP Dip Linked to Imports Spike
- US GDP shrank by 0.3% in Q1, first negative since 2022, largely due to a 41% spike in imports before tariffs took effect.
- Higher imports reduce GDP calculation; this dip may be temporary with tariffs likely reducing imports next quarter.
Starbucks' Struggles and Costs Rise
- Starbucks profits dropped 50% in Q1 due to higher staffing and restructuring costs amid a turnaround attempt.
- Sales fell 1% for four quarters straight, worsened by soaring coffee prices and tariffs raising costs.
Waymo-Toyota Partnership Pressures Tesla
- Waymo partners with Toyota to integrate its driverless tech into Toyota's vehicles, aiming at personally owned cars and robo-taxi fleets.
- This partnership pressures Tesla to improve its Full Self-Driving to compete against Waymo's driverless cars.