Which Is the Better Stock to Buy and Hold Forever: Amazon or Costco?

From NASDAQ.: 2025-02-16 04:49:00

In the early days, investing in Amazon (NASDAQ: AMZN) or Costco Wholesale (NASDAQ: COST) would have been incredibly profitable. A $10,000 investment in Costco in 1985 would be worth $11.9 million today, while the same investment in Amazon in 1997 would now be nearly $23.4 million. Both companies have shown strong gains over the last year, but which is the better long-term investment?

Amazon is known for its online shopping platform and cloud services through Amazon Web Services (AWS). Costco, on the other hand, has perfected the warehouse wholesale model and is expanding internationally. Amazon’s growth opportunities, like cloud services and advertising, make it a more attractive long-term pick.

While Costco has strong growth prospects, Amazon’s higher growth opportunities and lower valuation make it the better long-term investment. Costco trades at a higher forward earnings multiple and PEG ratio compared to Amazon, indicating that Amazon has more room for growth. Consider investing in Amazon for long-term success.



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