Green Mountain Plummets 22% After Starbucks Announces Competing Machine

Green Mountain Coffee (NASDAQ: GMCR) is trading down roughly 22% in after-hours trading.

Starbucks (NASDAQ: SBUX) announced just after the close that it was rolling out its own lineup of single-serve coffee machines. Starbucks' line will be called Verismo.

Earlier today, it was reported that Starbucks was planning an announcement. Interestingly, analysts at JP Morgan and Suntrust defended Green Mountain and stated that the announcement would probably be positive for the company. Starbucks currently produces K-Cups for Green Mountain's Keurig brewer system.

In recent months there has been a large amount of speculation over the stock. Hedge fund manager David Einhorn has been a big bear on the company, giving a long presentation that raised questions about the company's practices.