Mad Money

Is Starbucks a Buy or Sell?

SBUX Out of Favor With Wall St?

Is it time to dump Starbucks? Cramer certainly doesn’t think so, telling viewers Tuesday he thinks the stock is a buy. But Dan Fitzpatrick, a highly regarded technician on Wall Street, believes the java giant is heading lower.

According to Fitzpatrick, the charts show a company where the buyers are not committed. He believes the stock is vulnerable and falling from its own weight.

Cramer, however, believes the big money that is exiting the stock will soon come back in. That’s because he thinks Starbucks is a story that’s working. The coffee chain has a big connection to its customers through social media. And those customers also come in for more than just coffee.

“It’s like a third home for many people,” Cramer said, “and that’s a big part of the reason why social media can be such a needle mover.”

Cramer also believes SBUX has tremendous international upside. It plans to expand from 400 stores to 1500 in China by 2015, and it plans to double its store count in Korea over the next five years.

To further explain these dueling views, Cramer went “Off the Charts.” Watch the video above to see the full report.

Call Cramer: 1-800-743-CNBC

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