How Costco Wholesale Corporation (NASDAQ:COST) Can Survive Amazon.com, Inc (NASDAQ:AMZN)

How Costco Wholesale Corporation (NASDAQ:COST) Can Survive Amazon.com, Inc (NASDAQ:AMZN)

In face of growing online and e-commerce trends Costco Wholesale Corporation (NASDAQ:COST) has been a exception that has kep the growth momentum going. While Wal-Mart Stores Inc (NYSE:WMT) and Amazon.com, Inc (NASDAQ:AMZN) are locked in a battel against each other, Costco Wholesale Corporation (NASDAQ:COST) has been quietly continued its growth and has proved that it can co-exist with Amazon.com, Inc (NASDAQ:AMZN) without head on competing with each other. While Amazon acquisition of Whole Foods tanked Walmart share price for a short time, it had relatively no effect on Costco.

Analysts estimate a growth of 10 to 20% in Costco Wholesale Corporation (NASDAQ:COST) share price in near future. With a impressive year on year growth of around 8.8% Costco has certainly has set itself apart from Walmart and Amazon. Costco has a proven model that has continued to work. Amazon.com, Inc (NASDAQ:AMZN) continue to face huge expense in advertising, marketing and customer acquisition, while Costco Wholesale Corporation (NASDAQ:COST) customer keep going back for a sense of discovery, customers never know what bargain may be awaiting you at a Costco. Costco continued to see growth in its core Gold Star members which stood at 37.5 million in Q2 and total card holders at 88.9 million.

Amazon.com, Inc (NASDAQ:AMZN) profits plunged by 51% though revenue jumped 25% year over year. Amazon will find it hard to keep its advertising and marketing costs down and will only increase in future. Amazon Web Services saw significant growth of 71%. While Amazon has diversified and has many solid revenue and growth streams, but 75% of Costco Wholesale Corporation (NASDAQ:COST) revenue is dependent on membership sales with renewal rate near 90% across the globe.

Amazon.com, Inc (NASDAQ:AMZN)  Costco Wholesale Corporation (NASDAQ:COST)
Amazon.com, Inc (NASDAQ:AMZN)
Costco Wholesale Corporation (NASDAQ:COST)

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