From Nasdaq: 2025-04-25 04:47:00

Amazon (NASDAQ: AMZN) shares have dropped over 20% this year, pausing new data center leases. Meanwhile, Costco (NASDAQ: COST) stock is up 7% year to date, showing resilience amid market turbulence. Costco’s business is less impacted by economic headwinds due to tariffs, giving the company a clear advantage over Amazon in 2025.

Costco’s sales are less impacted by tariffs, with CEO Ron Vachris noting that the company is prepared to minimize any cost increases for its members. Costco is seen as a safe haven during economic downturns, providing stability for investors. In uncertain times, the value of high-quality items at great prices becomes even more important.

Amazon outperforms Costco in growth, with sales and earnings showing strong increases. Amazon’s growth prospects, including ventures into AI, healthcare, and self-driving cars, give the company more optionality for future growth. Amazon’s forward price-to-earnings ratio is lower than Costco’s, making it a potentially better buy for long-term investors.

Investors looking for growth opportunities may find Amazon to be a better stock to buy now than Costco. Amazon’s growth prospects, lower valuation metrics, and diverse business ventures give it an edge over Costco in the long run. With the potential for higher earnings growth and a lower forward P/E ratio, Amazon could outperform Costco in the coming years.

For investors seeking potentially lucrative opportunities, expert analysts are issuing “Double Down” stock recommendations for companies with significant growth potential. Past recommendations like Nvidia, Apple, and Netflix have shown impressive returns. Joining Stock Advisor now provides access to new “Double Down” alerts for three companies with strong growth prospects.



Read more at Nasdaq: Is Amazon a Better Stock to Buy Right Now Than Costco? The Answer Might Surprise You.