Shares of Costco Wholesale (NASDAQ: COST) jumped on Monday following reports of elevated traffic over the weekend as consumers stocked up on supplies. There are now 91 confirmed cases of the novel coronavirus in the U.S., and two confirmed deaths. Costco stock was up 8.3% at 2 p.m. EST today.
While it's unclear how widespread the traffic boost for Costco was over the weekend, social media posts showed long lines and empty shelves at some locations. This will provide a short-term increase in sales for the retailer, but it could have the effect of pulling forward demand. Once the crisis passes, Costco may see weaker sales for a time as customers work through their supplies.
Image source: Getty Images.
Source Fool.com