Costco's Sinking Margins and E-Commerce Fears Tank the Stock

Investors in Costco Wholesale Corporation (NASDAQ: COST) have been on something of a roller coaster ride.

Shares of the company have been pushed around by the overall retail environment than anything company specific -- fears involving the threat from e-commerce and fierce competition in the grocery space have weighed on the stock in recent months and that seemed to continue in the wake of its recent financial release.

Investors had hoped to see a continuation of the positive results from the previous quarter as well as updates on the new branded Visa card, annual shopper memberships, and its e-commerce initiatives. While the company provided results that exceeded many of the expectations set by stakeholders, it wasn't enough to overcome concerns about the future, and the stock fell nearly 6% following the financial report.

Source: Fool.com