SodaStream (SODA) Bulls Remain Optimistic on Rumored Starbucks Deal

SodaStream International (NASDAQ: SODA) turned green mid-day on Friday. The stock started the day underwater after Starbucks' (NASDAQ: SBUX) CEO Schultz said he was focused on Fizzio, its new handcrafted beverage. Comments came just days after a Globes article said Starbucks may take a 10% stake in SodaStream.

Broadly speaking, SodaStream M&A rumors are not new. Previous rumors included a potential acquisition by Coca-Cola Company (NYSE: KO). That rumor was scotched after Coca-Cola announced a partnership with Keurig Green Mountain, Inc. (NASDAQ: GMCR). Bulls, however, saw a silver lining and speculated competitor Pepsi (NYSE: PEP) would rush to do a deal with Soda. They also said the deal validates SODA’s business model. Critics called this a pipe-dream.

Similarly, Soda investors may be focusing on positives in Starbuck’s Fizzio statements, believing comments help validate rumors, say traders.

You May Also Be Interested In

• IBM tumbles on soft Q1 revenue; announces HashiCorp $6.4bn acquisition
• AMMO, Inc. (POWW) Announces Acquisition of Tooling Manufacturer
• Meta earnings, IBM to acquire HashiCorp, U.S. GDP ahead - what's moving markets