Retail is emerging from its inflation slump, and most of the country’s large retailers demonstrated important progress last year. Amazon(NASDAQ: AMZN) and Costco Wholesale(NASDAQ: COST), the two largest U.S. retailers behind first-place Walmart, ended the year with solid growth and healthy stock gains.
Let’s see what each of these companies brings to the investing table and which one is the better buy today.
Amazon is the largest e-commerce retailer in the U.S. It has higher sales than Costco, and it’s still growing faster. It’s also more profitable.
Company
Sales
Sales Growth
Net Income
Amazon
$158.9 billion
11%
$15.3 billion
Costco
$61 billion
7.5%
$1.8 billion
Data source: Amazon and Costco quarterly reports. Amazon metrics are for the 2024 third quarter, and Costco metrics are for the fiscal 2025 first quarter.
Amazon accounts for around 40% of all U.S. e-commerce sales, a breathtaking lead that’s unchallengeable in the near term. It’s taking all kinds of actions to protect its position and become the source of even more of its loyal Prime members’ shopping, like a new distribution network to keep products closer to customers and get them out faster. E-commerce remains Amazon’s core business, and it’s still growing. E-commerce is also increasing as a percentage of retail sales, expected to reach 41% of sales, up from 18% in 2017, according to the Boston Consulting Group.
But there’s something else entirely that makes Amazon stand out right now, and that’s generative artificial intelligence (AI). Really, it starts with Amazon Web Services, (AWS), Amazon’s cloud computing business. AWS is growing faster than e-commerce, and it’s a higher-margin business. In the third quarter, sales increased 19% year over year, accounting for 17% of sales and 62% of operating income.
Many of the most valuable generative AI solutions are available to AWS customers, who can tap into all kinds of data and tools to create or benefit from AI. CEO Andy Jassy keeps saying things like it’s a “once-in-a-lifetime type of opportunity” and that it’s already a billion-dollar run rate business.
There could be many factors to add in Amazon’s favor, but another important one is its growing advertising business, or better framed, its constant innovations that lead to new businesses and sales-generating opportunities.
You might say Costco is the very opposite of Amazon. As much as Amazon jumps from here to there, catching onto the flavor of the week, Costco is steadfast.
That’s not completely true; every company has to shift to meet changing needs, and Costco’s doing a fabulous job at staying the course with what it does best while embracing new opportunities to create more value for shoppers and shareholders. It offers self-checkout counters for quicker shopping, and it’s been experimenting with the best way to integrate e-commerce into its platform. For example, it offers store pickup for many items, a service Amazon can’t offer. It also allows customers to check store inventory for many products. In the 2025 fiscal first quarter (ended Nov. 24), e-commerce sales increased 13% over last year. Traffic, order value, and conversion rates all increased year over year.
Costco also releases monthly results, and e-commerce picked up even more, 34% year over year. Management says that was due to Thanksgiving-related sales happening a week later than last year, but it was a strong result nontheless.
But Costco is dependable because it has a reliable membership model that customers love. You might say that Costco’s main business isn’t selling products but selling memberships. Paid households increased 7.6% year over year to more than 77 million in Q1, and membership fee income increased 7.8% to $1.2 billion. Renewal rates were high, as usual, at 92.8% in the U.S. and Canada and 90.4% worldwide.
Costco also pays a dividend, which has a low yield of 0.48% at the current price. But it also pays an attractive special dividend occasionally that was $15 in 2023.
Neither of these stocks is cheap, but Costco is more expensive, trading at a price-to-earnings (P/E) ratio of 55 vs. 47 for Amazon.That makes it harder to call Costco a better value.
For most investors, Amazon is going to be the better buy. It’s growing faster and has more opportunities. However, investors who are looking for a solid, reliable stock and passive income, like a retiree, might choose Costco instead.
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John Mackey, former CEO of Whole Foods Market, an Amazon subsidiary, is a member of The Motley Fool’s board of directors. Jennifer Saibil has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Amazon, Costco Wholesale, and Walmart. The Motley Fool has a disclosure policy.
NEW YORK, Jan. 18, 2025 (GLOBE NEWSWIRE) — Rosen Law Firm, a global investor rights law firm, announces it is investigating potential breaches of fiduciary duties by the directors and officers of Southwest Airlines Co. LUV in connection with Southwest Airlines’ information technology infrastructure impacting the Company’s business, operations, and stock price.
If you currently own shares of Southwest Airlines stock, please visit the firm’s website at https://rosenlegal.com/submit-form/?case_id=10716 for more information. You may also contact Phillip Kim of Rosen Law Firm toll free at 866-767-3653 or via email at case@rosenlegal.com.
The Rosen Law Firm represents investors throughout the globe, concentrating its practice in securities class actions and shareholder derivative litigation. Rosen Law Firm achieved the largest ever securities class action settlement against a Chinese Company at the time. Rosen Law Firm was Ranked No. 1 by ISS Securities Class Action Services for number of securities class action settlements in 2017. The firm has been ranked in the top 4 each year since 2013 and has recovered hundreds of millions of dollars for investors. In 2019 alone the firm secured over $438 million for investors. In 2020, founding partner Laurence Rosen was named by law360 as a Titan of Plaintiffs’ Bar. Many of the firm’s attorneys have been recognized by Lawdragon and Super Lawyers.
Attorney Advertising. Prior results do not guarantee a similar outcome.
Contact Information:
Laurence Rosen, Esq. Phillip Kim, Esq. The Rosen Law Firm, P.A. 275 Madison Avenue, 40th Floor New York, NY 10016 Tel: (212) 686-1060 Toll Free: (866) 767-3653 Fax: (212) 202-3827 case@rosenlegal.com www.rosenlegal.com
WHY: Rosen Law Firm, a global investor rights law firm, reminds purchasers of securities of Aehr Test Systems AEHR between January 9, 2024 and March 24, 2024, both dates inclusive (the “Class Period”), of the important February 3, 2025 lead plaintiff deadline.
SO WHAT: If you purchased Aehr securities during the Class Period you may be entitled to compensation without payment of any out of pocket fees or costs through a contingency fee arrangement.
WHAT TO DO NEXT: To join the Aehr class action, go to https://rosenlegal.com/submit-form/?case_id=31986 or call Phillip Kim, Esq. at 866-767-3653 or email case@rosenlegal.com for more information. A class action lawsuit has already been filed. If you wish to serve as lead plaintiff, you must move the Court no later than February 3, 2025. A lead plaintiff is a representative party acting on behalf of other class members in directing the litigation.
WHY ROSEN LAW: We encourage investors to select qualified counsel with a track record of success in leadership roles. Often, firms issuing notices do not have comparable experience, resources, or any meaningful peer recognition. Many of these firms do not actually litigate securities class actions, but are merely middlemen that refer clients or partner with law firms that actually litigate cases. Be wise in selecting counsel. The Rosen Law Firm represents investors throughout the globe, concentrating its practice in securities class actions and shareholder derivative litigation. Rosen Law Firm achieved the largest ever securities class action settlement against a Chinese Company at the time. Rosen Law Firm was Ranked No. 1 by ISS Securities Class Action Services for number of securities class action settlements in 2017. The firm has been ranked in the top 4 each year since 2013 and has recovered hundreds of millions of dollars for investors. In 2019 alone the firm secured over $438 million for investors. In 2020, founding partner Laurence Rosen was named by law360 as a Titan of Plaintiffs’ Bar. Many of the firm’s attorneys have been recognized by Lawdragon and Super Lawyers.
DETAILS OF THE CASE: According to the lawsuit, during the Class Period, defendants made false and/or misleading statements and/or failed to disclose that: (1) contrary to prior representations to investors, Aehr was continuing to experience substantial delays in customer orders; (2) the foregoing issue was likely to have a material negative impact on Aehr’s revenue growth; (3) accordingly, Aehr’s business and/or financial prospects were overstated; and (4) as a result, Aehr’s public statements were materially false and misleading at all relevant times. When the true details entered the market, the lawsuit claims that investors suffered damages.
No Class Has Been Certified. Until a class is certified, you are not represented by counsel unless you retain one. You may select counsel of your choice. You may also remain an absent class member and do nothing at this point. An investor’s ability to share in any potential future recovery is not dependent upon serving as lead plaintiff.
Attorney Advertising. Prior results do not guarantee a similar outcome.
Contact Information:
Laurence Rosen, Esq. Phillip Kim, Esq. The Rosen Law Firm, P.A. 275 Madison Avenue, 40th Floor New York, NY 10016 Tel: (212) 686-1060 Toll Free: (866) 767-3653 Fax: (212) 202-3827 case@rosenlegal.com www.rosenlegal.com
Bitcoin ETF Soars 109% as Growth Themes Dominate 2024
ETF investors poured over $12.5 billion into funds as key stock indexes reached new highs.
U.S. equity ETFs captured over $7.9 billion in inflows Friday, leading all asset classes as investors showed a strong appetite for domestic stock exposure.
Fixed income ETFs also saw some robust demand, with U.S. bond fund attracting over $2.9 billion in new money. The iShares iBoxx $ High Yield Corporate Bond ETF (HYG) led the fixed income category with $728 million in inflows.
International equity funds added $590 million, while commodities ETFs saw $378 million in outflows.
Total ETF assets under management stood at $10.46 trillion, with the day’s flows representing a 0.12% increase.
Disclaimer: All data as of 6 a.m. Eastern time the date the article is published. Data is believed to be accurate; however, transient market data is often subject to subsequent revision and correction by the exchanges.
State Street Corp.’s SPDR unit, the number three U.S. ETF issuer, pulled in less cash in the fourth quarter of 2024 than in the same period in 2023, as investors cut the amount of money that went into the company’s flagship SPDR S&P 500 ETF Trust (SPY) by more than half.
Boston-based State Street’s ETF unit pulled in $65 billion in Q4 2024, marking a noticeable dip from the $68 billion in the same quarter in 2023, according to the company’s latest earnings report. Still, that total is a 75% jump from Q3 2024, when the SPDR unit pulled in $37 billion.
The first and currently the world’s largest U.S. ETF with $621.4 billion in assets, SPY’s asset growth has slowed as Vanguard’s $603.9 trillion Vanguard S&P 500 ETF (VOO) seizes more market share. The latter fund has become the world’s second-largest, replacing the iShares Core S&P 500 ETF (IVV) in just the past few days, and is widely expected to take over as the world’s largest exchange-traded fund, possibly within a matter of weeks.
SPY’s inflows slumped to $20.8 billion in the fourth quarter from $46.3 billion in 2023’s final period. Meanwhile, VOO’s inflows more than tripled to $45.3 billion in the fourth quarter from $11.9 billion in 2023’s last quarter.
SPY costs three times more to own than VOO, charging an expense ratio of 0.09% compared with VOO’s 0.03%.
VOO’s momentum, at the expense of SPY, is continuing this year, Bloomberg Senior ETF Analyst Eric Balchunas posted on X.
“Somehow $VOO is outdoing itself this year w/ +$13b in 11 days to start 2025,” he wrote. “It’s also 25% of all net flows and a mere $20b away from dethroning $SPY.”
The entire North American ETF industry’s assets surged 61% year over year to $427 billion, State Street noted in its press release.
State Street, which manages $1.29 trillion in 137 ETFs, ranks behind BlackRock Inc. and its iShares unit and Vanguard Group in terms of largest issuers.
The Federal Reserve cut the federal funds rate three times in 2024 for a total reduction of one percentage point. As a result, deposit interest rates — including money market account rates — have been falling.
It’s more important than ever to compare MMA rates and ensure you earn as much as possible on your balance.
Although money market account rates are elevated by historical standards, the national average rate for MMAs is just 0.66%, according to the FDIC. The good news: Top high-yield money market accounts offer upwards of 5% APY — more than seven times the national average.
That’s why it’s important to shop around before opening a money market account. Interest rates vary widely, but there are several banks (in particular, online banks) and credit unions with highly competitive offers.
Here’s a look at some of the top MMA rates available today:
Additionally, the table below features some of the best savings and money market account rates available today from our verified partners.
Online banks operate exclusively via the web. This significantly reduces their overhead costs, so they’re able to pass those savings onto customers in the form of high deposit rates and low fees. If you’re searching for the best money market account rates, online banks are a great place to start.
That said, online banks aren’t the only place you can find savings accounts with rates of 4% to 5% APY. Credit unions are not-for-profit financial cooperatives, and are also know for providing competitive rates and fewer fees. Many credit unions have certain requirements that must be met in order to become a member, though there are some that allow just about anyone to join.
Money market accounts can be a great option for short-term savings goals, like building an emergency fund or setting aside money for an upcoming expense. They generally offer higher interest rates than regular savings accounts, and they provide easier access to your money compared to some other options like certificates of deposit (CDs).
Money market accounts are also considered low-risk, and they are FDIC-insured up to the standard $250,000 per depositor, per institution. This makes them safer than money market funds, which can be subject to market risk.
However, keep in mind that many money market accounts require a minimum balance to open the account and earn the highest advertised rate. If you can’t maintain this balance, you might incur fees or miss out on the best rates.
And although you can generally access your funds as needed, MMAs may limit the number of transactions you can make each month. If you need frequent access to your money, this might be a consideration.
Global ETF Industry Shatters Records With 1.88T Inflow in 2024
Global investors poured a record $1.88 trillion into exchange-traded funds in 2024, a dramatic increase from the previous record of $1.29 trillion set in 2021, according to ETFGI’s latest report.
The surge in ETF adoption reflects a shift in how investors access markets globally, with the industry demonstrating consistent growth through 67 months of net inflows while expanding its reach across 81 exchanges in 63 countries.
Assets in the global ETF industry reached $14.85 trillion by the end of 2024, representing a 27.6% increase from the $11.63 trillion recorded at the end of 2023, according to the report.
Active ETFs emerged as one of the top drivers of growth, attracting nearly $41.8 billion in December alone and reaching $374.3 billion in total 2024 inflows, more than double the nearly $184.1 billion gathered in 2023, the ETFGI data revealed.
Fixed-income ETFs demonstrated strong momentum, gathering $314.3 billion in 2024, surpassing 2023’s inflow of $272.9 billion, based on the report findings.
The emerging markets index increased by 0.2% in December and finished 12% higher for 2024, with the United Arab Emirates and Greece leading gains among these markets in December, according to Deborah Fuhr, managing partner at ETFGI.
The emerging markets’ performance, however, stands in contrast to developed markets excluding the U.S., which saw a 2.7% decrease in December, though still managing a 3.8% gain for 2024, according to the report.
The divergence highlights the evolving nature of global ETF investments, as investors increasingly use the vehicles to capture targeted exposure to high-growth regions.
To meet this growing demand for diverse market exposure, the ETF industry expanded its global footprint. The industry now offers 13,198 products with 26,244 listings from 814 providers across the globe, according to the ETFGI report.
This expansion includes new commodity-focused products, with commodity ETFs attracting $3.9 billion in 2024, reversing the previous year’s outflows of nearly $16.9 billion, based on the report data.
The iShares Core S&P 500 ETF (IVV) led individual fund flows for December, gathering more than $23.1 billion, while emerging market-focused products gained increasing attention from global investors, according to the ETFGI findings.
Happy Friday, traders. Welcome to our weekly market wrap, where we take a look back at these last five trading days with a focus on the market news, economic data, and headlines that had the most impact on gold prices and other key correlated assets— and may continue to in the future.
After initially looking as if they might re-trace last week’s modest gains, gold prices have surged higher this week, breaking above a key level and consolidating new support.
It looks as if there could be a lot of upward momentum and support for gold prices in the first quarter of this year, based on how trading played out over these last five sessions, cresting above the previous resistance at $2700/oz.
The week began with a step back. One week ago, of the two narratives that appear to be the prime motivations of short-term gold investment at the start of 2025— the FOMC/monetary policy input function and the lack of clarity (but abundance of rhetoric) around the incoming US administration’s fiscal policy plans—uncertainty about US fiscal policy and its impact on Dollar and Treasury markets had taken the lead on Friday as traders looked to safety away from USD and pushed gold spot higher. This Monday, we saw an unwinding of that move as traders locked back in on an expectation that the FOMC will stick to its current hawkish projection to cut interest rates just twice this year, pushing a surge in the US currency and a corresponding slide in gold prices.
Traders took a breather on Tuesday in gold and other major asset classes, with a big focus on Wednesday’s CPI report. And this is where robust in-flows returned to gold. Initial headlines around the updated consumer inflation data called out a modest uptick in overall inflation, although this was expected (per the market consensus) and remained below +3.0% YoY. What eventually took hold of investors’ focus, and then their imaginations, was an unexpected decline, however small, in “core-CPI” (ex. food and energy prices.) After a couple of months of generally stubborn inflation data, this pushes back to the forefront the possibility that over the first quarter or half of 2025, the ever “data dependent” Fed might be convinced to once again get more aggressive with cutting interest rates if inflation does resume its downward slope. As a result, the Dollar began what would be a considerable two-day slide. To corroborate this as a possibility, Fed Governor Waller publicly commented that such an improvement in inflation data could indeed convince the FOMC to again target three or even four cuts this year, and with revived hopes of a lower interest rate environment arriving even sooner, gold prices rebound steadily from mid-morning on Wednesday. This is not just going back to the holding ground of $2660, but also to and through the $2700 level from which the chart has not looked back since.
In the back half of this week, support for gold has held firm as investors moved past the one top-tier data point on the calendar and markets’ attention once again turned to the uncertainties of the incoming US administration, whose transition to power in Washington comes next week. After a market holiday on Monday, traders may need to brace for the spurts of volatility that often characterize a trading week dictated almost entirely by DC headlines and the related (possible) implications to the top global economy’s fiscal policy. There is sure to be a flurry of executive actions and other “grand” announcements in those first days, contrasted with an exceedingly light data calendar.
In the meantime, traders, I hope you can get out and safely enjoy your weekend for the next couple of days. After that, I’ll see you back here next week for another market recap.
WHY: Rosen Law Firm, a global investor rights law firm, reminds purchasers of securities of ASP Isotopes Inc. ASPI between October 30, 2024 and November 26, 2024, both dates inclusive (the “Class Period”), of the important February 3, 2025 lead plaintiff deadline.
SO WHAT: If you purchased ASP Isotopes securities during the Class Period you may be entitled to compensation without payment of any out of pocket fees or costs through a contingency fee arrangement.
WHAT TO DO NEXT: To join the ASP Isotopes class action, go to https://rosenlegal.com/submit-form/?case_id=32062 or call Phillip Kim, Esq. toll-free at 866-767-3653 or email case@rosenlegal.com for information on the class action. A class action lawsuit has already been filed. If you wish to serve as lead plaintiff, you must move the Court no later than February 3, 2025. A lead plaintiff is a representative party acting on behalf of other class members in directing the litigation.
WHY ROSEN LAW: We encourage investors to select qualified counsel with a track record of success in leadership roles. Often, firms issuing notices do not have comparable experience, resources, or any meaningful peer recognition. Many of these firms do not actually litigate securities class actions, but are merely middlemen that refer clients or partner with law firms that actually litigate the cases. Be wise in selecting counsel. The Rosen Law Firm represents investors throughout the globe, concentrating its practice in securities class actions and shareholder derivative litigation. Rosen Law Firm achieved the largest ever securities class action settlement against a Chinese Company at the time. Rosen Law Firm was Ranked No. 1 by ISS Securities Class Action Services for number of securities class action settlements in 2017. The firm has been ranked in the top 4 each year since 2013 and has recovered hundreds of millions of dollars for investors. In 2019 alone the firm secured over $438 million for investors. In 2020, founding partner Laurence Rosen was named by law360 as a Titan of Plaintiffs’ Bar. Many of the firm’s attorneys have been recognized by Lawdragon and Super Lawyers.
DETAILS OF THE CASE: According to the lawsuit, during the Class Period, defendants made false and/or misleading statements and/or failed to disclose that: (1) ASP Isotopes overstated the potential effectiveness of its enrichment technology; (2) ASP Isotopes overstated the development potential of its high assay low-enriched uranium facility; (3) ASP Isotopes overstated ASP Isotopes’ nuclear fuels operating segment results; and (4) as a result of the foregoing, defendants’ positive statements about ASP Isotopes’ business, operations, and prospects were materially misleading and/or lacked a reasonable basis. When the true details entered the market, the lawsuit claims that investors suffered damages.
No Class Has Been Certified. Until a class is certified, you are not represented by counsel unless you retain one. You may select counsel of your choice. You may also remain an absent class member and do nothing at this point. An investor’s ability to share in any potential future recovery is not dependent upon serving as lead plaintiff.
Attorney Advertising. Prior results do not guarantee a similar outcome.
Contact Information:
Laurence Rosen, Esq. Phillip Kim, Esq. The Rosen Law Firm, P.A. 275 Madison Avenue, 40th Floor New York, NY 10016 Tel: (212) 686-1060 Toll Free: (866) 767-3653 Fax: (212) 202-3827 case@rosenlegal.com www.rosenlegal.com
