Costco (NASDAQ: COST) has outperformed Amazon (NASDAQ: AMZN) in stock performance so far in 2026, with Costco shares rising by double digits while Amazon’s have declined by a similar margin. In its fiscal Q2 of 2026, Costco reported net sales of $68.2 billion, up 9.1% year-over-year, and a net income of $2.04 billion, a 13.8% increase. Conversely, Amazon, despite a strong fourth-quarter net sales of $213.4 billion—an increase of 14% year-over-year—saw stock value decline primarily due to concerns over its substantial $200 billion capital expenditures planned for AI infrastructure.
Amazon’s price-to-earnings ratio is currently about 26, much lower than Costco’s 48, indicating a potentially better value for investors. CEO Andy Jassy has emphasized that investments in AI through Amazon Web Services are expected to yield significant growth. In contrast, Costco’s strong market position is bolstered by a 92.1% renewal rate on memberships even after fee increases, positioning it as a solid defensive stock amidst economic uncertainty.
