Jul 9, 2026 · 6 min
Consumer giants stumble as Starbucks rewrites its AI strategy
070926_5pm_Stock Movers_FINAL
The episode connects Starbucks’ cost-focused technology pivot with signs that tighter budgets and geopolitical uncertainty are pressuring major consumer brands.
- 1Starbucks is developing more AI software internally instead of relying solely on external vendors such as IBM and Microsoft.
- 2PepsiCo’s stock declined as consumer concerns about Middle East tensions compounded pressure from tightening budgets.
- 3Costco shares fell after June comparable sales missed analyst expectations, highlighting sensitivity to retail performance data.
Don't miss
The clearest strategic shift comes from Starbucks’ decision to develop AI software internally to reduce reliance on outside vendors and cut costs.
The brief
Carol Massar and Lisa Matteo open Stock Movers with Bloomberg TV Markets correspondent Norah Mulinda, framing the day’s market action around three major consumer brands.
Starbucks is looking inward for AI software, developing tools internally rather than relying solely on external vendors including IBM and Microsoft—a pivot aimed at cutting software costs.
PepsiCo’s stock declined as tightening consumer budgets met concerns about geopolitical tensions in the Middle East, adding pressure to a familiar consumer staple.
Costco shares fell after June comparable sales missed analyst expectations, making the retailer’s monthly performance a fresh test of consumer resilience.
Together, the moves show three different market pressures: technology costs at Starbucks, geopolitical uncertainty at PepsiCo, and sales execution at Costco.
What was said on this episode
3 statements · 2 positive · 1 negative
Starbucks may bring AI software development in-house to reduce technology costs.
“they're starting to look internally and saying, hey, we could do it ourselves. Maybe we don't spend all this money on outsourcing from Microsoft and IBM. Let's bring it in house and see if we can do some cost cutting.”
Listen at 1:22
Reducing Starbucks' technology costs could create room for growth.
“if they're able to basically bring down some of those tech costs that maybe they can actually see some wiggle room and some growth.”
Listen at 1:44
Costco's June comparable sales fell below analyst expectations.
“comparable sales for the month of June that actually fell short of analysts expectations.”
Listen at 3:43
Statements are attributed to the speaker as said on the episode and reflect their view at the time, not PodLume's. They are not advice.
Featuring
Starbucks
Artificial Intelligence
Middle East
Costco Wholesale CorporationListen to the full episode and explore every guest, topic, and moment on PodLume.