Amazon Trades at Discount to Costco Despite 7% vs 15% Returns
Costco shares have climbed about 15% year-to-date compared to Amazon's roughly 7% gain. Amazon trades at a forward P/E of 22x versus Costco’s 34x multiple, highlighting Amazon's relative valuation appeal despite its lagging stock performance.
1. Year-to-Date Performance
Costco’s shares have gained about 15% in 2026, surpassing Amazon’s roughly 7% rise over the same period as warehouse club membership growth outpaced e-commerce demand shifts.
2. Valuation Disparity
Amazon trades at a forward price-to-earnings ratio near 22x compared with Costco’s premium multiple around 34x, reflecting divergent market views on growth prospects and margin stability.
3. Investor Implications
The valuation gap has attracted value-oriented investors to Amazon, with expectations that margin improvements in cloud computing and operational efficiencies could narrow the discount over the coming quarters.