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American History

 

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February 16, 1996

 

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That makes the stock slightly more expensive than Google, which trades at 51 times trailing earnings. The lofty P/E indicates that investors are highly enthusiastic about the stock, but not everyone is so perky about Starbucks' prospects. One skeptic is David Trainer, founder of New Constructs, an independent equity research firm based in Nashville...
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One skeptic is David Trainer, founder of New Constructs, an independent equity research firm based in Nashville. Trainer, a former auditor at Arthur Andersen, makes a living poring over financial statements looking for holes. He says that Starbucks will have to achieve extraordinary growth to justify its current valuation...
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