Why Costco Stock Dropped Today

By Rich Smith – Dec 15, 2025 at 2:44PM ESTKey PointsRoth Capital downgrades Costco stock to sell today.CNBC reports holiday shoppers may be favoring Costco.These 10 Stocks Could Mint the Next Wave of Millionaires ›NASDAQ: COSTCostco WholesaleMarket Cap$393BToday's Changeangle-down(-2.81%) $24.82Current Price$859.65Price as of December 15, 2025 at 3:43 PM ETWhen shoppers shop, they seem to prefer shopping at Costco.Costco Wholesale (COST 2.81%) slid 3.6% through 2:25 p.m. ET Monday after Wall Street bank Roth Capital downgraded the shares from neutral to sell, and set a $769 price target on the $852 stock. Roth says it finds Costco's metrics "concerning," reports TheFly.com today, noting that same-store sales growth and member additions are both decelerating, and membership renewals are "fading." Image source: Getty Images. Costco rivals circle At the same time, Roth warns of increased competition from Walmart (WMT 0.03%) and BJ's Wholesale (BJ 1.36%) as the all-important holiday season gets underway. But is the news really as bad as Roth suggests? A recent report from CNBC suggests otherwise. According to the CNBC All-America Economic Survey, "41% of Americans plan to spend less for the holidays this year," with 46% of those shoppers blaming inflation for why they're cutting back. 61% of shoppers surveyed say prices are rising faster than their incomes, especially among lower-income consumers. But here's the thing:Advertisement This could be good news for Costco. ExpandNASDAQ: COSTCostco WholesaleToday's Change(-2.81%) $-24.82Current Price$859.65Key Data PointsMarket Cap$393BDay's Range$851.41 - $887.1152wk Range$851.41 - $1078.23Volume197KAvg Vol2.6MGross Margin12.88%Dividend Yield0.57% Is Costco stock a sell? After all, Costco famously sells goods at a discount, relying on membership fees to provide most of its profit. What's more, while overall consumer spending looks mostly flat this Christmas season, at about $1,016 per shopper, those who are spending more will spend closer to $1,199 this year. And according to CNBC, "those spending more than $1,000 are more likely to be visiting places like Costco." Regardless of what Roth thinks is happening, it seems to me this trend is actually good news for Costco, as bargain-seekers and big spenders alike flock to its stores. Granted, at 47 times earnings, I cannot really call Costco stock "cheap." But I wouldn't sell the stock today simply on Roth's say-so.About the AuthorRich Smith is a contributing Motley Fool defense and stock market analyst covering publicly traded and emerging companies in defense, space, aerospace, and other sectors. Prior to The Motley Fool, Rich practiced international corporate law for Clifford Chance in Russia, and for the Russian-Ukrainian Legal Group in Moscow, Kyiv, and Washington, D.C. He holds a bachelor’s degree in international relations from the College of William & Mary, a law degree from the University of Baltimore, and a language certification from the International Institute of Russian Language & Culture in Tver, Russian Federation. The Globe and Mail once featured him as “one of the best stock pickers since 2009.”TMFDittyX@RichSmithFoolRead NextDec 15, 2025 •By John BallardGot $1,000? 1 Consumer Goods Stock To Buy and Hold for DecadesDec 14, 2025 •By Neil PatelShould You Forget Sirius XM?

This Stock Has Made Far More MillionairesDec 13, 2025 •By Neil PatelIs Costco Stock a Long-Term Buy?Dec 11, 2025 •By Thomas NielWhere Will Costco Stock Be in 1 Year?Dec 10, 2025 •By Anders BylundHow Has Costco (COST) Stock Done for Investors?Dec 9, 2025 •By Parkev Tatevosian, CFAIs Costco Stock a Buying Opportunity Before 2026?