Costco Stock Drops Sharply at Open Today
Company's Shares Down Nearly 10%
Investors React to Disappointing Earnings Report
Costco Wholesale Corporation's stock fell sharply at the opening of trading today, losing nearly 10% of its value. The decline comes after the company reported disappointing earnings for the past quarter, missing analyst expectations.
The stock opened at $351.29, down $34.82 from its closing price yesterday. The drop represents a decline of 9.9%. The stock has since recovered slightly but remains down more than 7% for the day.
The earnings report showed that Costco's net income fell by 6.5% in the past quarter, from $1.43 billion to $1.34 billion. The company attributed the decline to a number of factors, including higher costs for labor and merchandise.
Investors were also disappointed by Costco's comparable sales growth, which came in at 2.6% for the quarter. This was below consensus estimates of 3.0% growth.
The drop in Costco's stock price today is a sign that investors are concerned about the company's ability to maintain its growth in the face of rising costs and competition.
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