3 Things Costco Management Wants You to Know
Every time something shifts in the retail space, people question whether Costco (NASDAQ: COST) can continue its success.
It happened again when Amazon.com (NASDAQ: AMZN) bought Whole Foods. Investors and analysts all jump to the conclusion that this is the move that will finally sink the warehouse club. Then sanity sets back in, Costco reports its usual increase in members, and any losses its stock sustained are slowly recovered.
Perhaps it's because the membership-based warehouse club has proved to be an outlier when it comes to competing with Amazon, but it does feel sometimes as if stock analysts consistently underestimate the company. Costco isn't other retailers and grocery chains. It's a company that has built an Amazon-resistant model that consumers clearly like.
Source: Fool.com
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