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Best of StockTwits: Not feeling like a million Starbucks

June 5, 2012: 2:00 PM ET

Traders debate whether the Starbucks (SBUX) Bay Bread/La Boulange buy is a half-baked idea. And Netflix (NFLX) decides to show some backbone.

JeffReevesIP: I just don't get the $SBUX bakery move. Yes, some Starbucks coffee drinkers may buy a pastry too. But is that the extent of the "plan?"

JeffReevesIP: Bigger issue: I ADORE coffee but more & more don't - esp younger energy drink crowd. Yes $SBUX must rethink "cafe" menu - but bread ain't it.

herbgreenberg: Regarding my "coffee peaked" tweet... I mean coffee growth peaking. $SBUX would not be doing this if it still had a long runway

AronPinson: You mean $SBUX didn't want to buy a company with no unique technology, tons of pending law-suits, accounting shenanigans etc. $GMCR

Investors seem disappointed that Starbucks didn't make a bolder move. Green Mountain (GMCR) investors are clearly not happy that the bakery news did not involve K-Cups. And Panera (PNRA) longs curiously shrugged off any concerns about Starbucks encroaching on its turf.

Starbucks has tried food before ... with limited success.  But it's clear that the company is not resting on its laurels after the stock hit a new all-time high earlier this year. I think CEO Howard Schultz deserves credit fore realizing that Starbucks has to diversify before it's too late.

TMTanalyst: $NFLX building out its own CDN and initially will use existing vendors but over time will transition 100% to its own - $AKAM $LLNW

The_Real_Fly: Interesting move by $NFLX to become CDN. Isn't that capital intensive? Maybe they want to accelerate bankruptcy

Now now. Netflix has had its share of problems but this isn't a company that's going away anytime soon. Still, building its own content delivery network (or Internet backbone if you will) will likely be costly. It's telling that shares of Netflix were lower Tuesday. But investors in Netfflix's new rivals are even more scared. Akamai (AKAM) and Limelight (LLNW) both plunged.

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Paul Lamonica
Paul R. La Monica
Assistant Managing Editor, CNNMoney

Paul R. La Monica is an assistant managing editor at CNNMoney. He is the author of the site's daily column, The Buzz, and also tweets throughout the day about the markets and economy @LaMonicaBuzz. La Monica also oversees the site's economic, markets and technology coverage.

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