Amazon (NASDAQ: AMZN) and Costco Wholesale (NASDAQ: COST) are different companies but share one thing in common: Each has a large base of loyal customers who depend on these companies for essential items every day. Amazon has over 200 million Prime members, but Costco also continued to grow its member count during the pandemic. Year to date, Amazon shares are down 33%, while the S&P 500 index has dropped 24%.
One of those survivors was Costco Wholesale (NASDAQ: COST), which usually attracts a steady stream of shoppers during economic downturns. Customers often buy their products in bulk to save cash during tougher times, and Costco locks them in with its annual memberships. Costco also sells cheaper gas than many stand-alone stations.
Costco, oh Costco, where would we be without you? Across the country, people are addicted to its low-price staples, free samples, Kirkland products, and most of all the rotisserie chicken and hot dogs. Perhaps you're a compulsive Costco-er who has bought a car through Costco, wears glasses from the Costco optician, and insured your home, pet, and life through the Costco insurance services.