Amazon vs. Costco: Which Stock Is a Better Buy?

Shares of e-commerce leader Amazon (NASDAQ: AMZN) and warehouse club Costco Wholesale (NASDAQ: COST) have both created significant wealth for shareholders over the long haul. But they are entering 2026 with very different valuation multiples — and very different underlying business growth too. Surprisingly, however, the stock with the cheaper valuation is the one with meaningfully faster revenue growth.

Further, this is a particularly interesting time to compare the two stocks, as their year-to-date returns have diverged. Amazon stock has pulled back about 14% over the last month as investors digest a massive new capital spending plan. Costco stock, meanwhile, has soared 17% year to date as investors appreciate the durable and predictable nature of its underlying business amid uncertainty, driven by fears about the costs and disruptive nature of AI (artificial intelligence).

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