NEW YORK, NY / ACCESSWIRE / June 15, 2017 / Starbucks saw shares decline even further on Wednesday, after an analyst at Wedbush Futures downgraded the stock for the very first time. IBM also saw its shares fall into the red slightly but had some big news about partnering with German automaker BMW in autonomous car technology.
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Starbucks Corporation's shares closed down 1.07% on Wednesday after the stock was downgraded by a Wedbush Futures analyst. Nick Seytan has downgraded Starbucks to "hold." This is the first time Seytan has ever downgraded the coffee powerhouse so it's not surprising that traders weren't happy. Seytan has a price target of $65 on the stock still which represents roughly a 7.8% premium to Wednesday's closing price. Seytan wrote in a note, "Our recent checks of 5% of U.S. co-owned locations point to a modern acceleration in [the third quarter,] However, we expect overall [third-quarter] Americas comps in line to slightly below 5.3% consensus. We continue to model 5% for [the third quarter.]" After hitting a record close of $64.57 earlier this month, the stock has been on a losing streak. Shares of Starbucks have been falling for eight days in a row.
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International Business Machines Corporation had a moderate close in the red on Wednesday, down 0.30%. The company announced that it would be partnering up with BMW to provide cloud-based data management for BMW's connected car initiative called CarData. The program just launched last month and is designed to connect 8.5 million vehicles equipped to transfer data to owners who opt in. Data including third parties marketing customized and discounted products such as oil changes or insurance policies. The German automaker is focusing on building a sizable position for itself in the next generation of connected and autonomous car technology. IBM's cloud-computing platform helps connect passengers to customized services that are based on real time. The company already has a deal with General Motors Co. IBM and BMW will start their project this fall in Europe. Dirk Wollschlaeger, IBM's general manager for global automotive, aerospace and defense, said in an interview, "We are the broker and the enabler for the third parties." According to Wollschlaeger, the company is in talks with another European auto maker that plans to use its Bluemix cloud platform.
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