Costco’s Stock Lags Despite Strong Earnings as Market Favors Crypto Assets

Costco Wholesale Corporation reported robust fiscal Q1 2026 results, with earnings of $4.50 per share surpassing estimates by 19 cents. Revenue climbed 8.3% to $67.3 billion, fueled by a 20.5% surge in e-commerce sales and 14% growth in membership fees. Yet shares fell 2% Friday, extending 2025's 5% decline—a stark underperformance versus Walmart's 30% gain and the S&P 500's 16% rally.

While traditional retail stocks waver, cryptocurrency markets continue absorbing capital flows. No direct crypto mentions surfaced in Costco's report, but the divergence highlights shifting investor priorities. Institutional interest increasingly favors digital assets like BTC and ETH over brick-and-mortar retail plays.

The warehouse giant's digital engagement metrics show promise, with 'digitally enabled comp sales' jumping 20.5%. Yet in today's market, such growth appears insufficient to compete with the asymmetric returns offered by crypto assets traded on platforms like Coinbase and Binance.