In a worrying turn of events for Starbucks Corp., the coffee giant's shares have experienced their longest losing streak since the company went public in 1992. Concerns have been mounting over a potential slowdown in sales trends, leading to an 11th consecutive session of decline, erasing approximately $12 billion of Starbucks' market value.

According to third-party sales data, there has been a notable deceleration in Starbucks' performance, signaling a "material slowing" in November after the company reported strong comparable sales growth of 8% in the fiscal fourth quarter. JPMorgan Chase & Co. analyst John Ivankoe stated that this decline could be attributed to a Christmas holiday promotion that may not match the success of previous events, such as the popular Pumpkin Spice Latte. As a result, he lowered his first-quarter US comparable sales estimate to 4% growth, compared to the previous anticipation of a 6% increase.

Despite initial positive momentum in November, following Starbucks' better-than-expected quarterly results and optimistic sales outlook for fiscal 2024, the stock has been facing a downward trend in the past two weeks. The concerns stem from "still-slow China data" and overall sales trends, according to analyst John Ivankoe, who rates the stock as overweight.

Investors are growing apprehensive that Starbucks may fall short of consensus expectations for US comparable sales in the current quarter. Credit-card data analysis over the last few weeks has indicated a slowdown, prompting Wedbush Securities Inc. analyst Nick Setyan to express caution. Setyan has a neutral rating on Starbucks, emphasizing the stock's sensitivity to signs of consumer weakness.

Data-driven research firm M Science has reported a deceleration in sales trends within the snack and coffee industry during the seven-day period leading up to November 19. Analyst Matthew Goodman highlighted that this decline was primarily driven by softer trends at Starbucks. This trend represents the third consecutive week of decelerating performance, alongside several boycotts and recent labor strikes, including the Red Cup Day protest on November 16, which affected up to 200 US locations.

The shares of Starbucks have experienced a 1.6% decline this year, in contrast to the 11% gain registered by the S&P 1500 Composite Restaurants Index. This recent slump has intensified concerns among investors and analysts regarding the coffee giant's future sales prospects.

While Starbucks continues to be a leading name in the coffee industry, the combination of weakening sales trends, potential consumer vulnerabilities, and negative market sentiment has resulted in a challenging period for the company. Observers will closely monitor Starbucks' forthcoming performance to assess its ability to regain its footing in the market.