Amazon trades at a trailing P/E of about 20, roughly in line with the average value stock, while Costco trades at 50 times trailing earnings, richer than most established growth stocks. Amazon's growth has slowed as Alphabet and Microsoft intensified competition in cloud computing, and the market appears to be pricing in a possible end to AWS's strong growth. Costco is viewed as a safe haven as investors worry that AI-related trouble could spread to other parts of the economy. The author argues Costco deserves a modestly higher valuation for its relative safety, but both stocks are pricing in more catastrophe than is realistic. Once these fears pass, Costco may look too expensive and Amazon too cheap, an opportunity the author sees for investors considering a stake in Amazon.
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AmazonCostcovaluationcloud computing
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Related tickers and likely impact
AMZN
• NeutralAmazon
Relevance: low
| Market | US stocks |
|---|---|
| Sector | Consumer Discretionary |
| Industry | Broadline Retail |
| Market cap | $2.6T |
| Close on 11/04/2026 | 266.14 |
| Change that session | +6.16% |
Impact is scored by AI from the headline and may be wrong. It is not investment advice.
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