The Real Cash Cow for Costco and Amazon

Updated

The following video is from Tuesday's MarketFoolery podcast, in which host Chris Hill, along with analysts Jason Moser and Andy Cross, discuss the top business and investing stories of the day.

Costco reported a 39% increase in second-quarter earnings and a 5% increase in same-store sales. And according to a Morningstar report, Amazon.com's Prime service has more than 10 million members. Those members account for a third of Amazon's operating income. In this installment of MarketFoolery, our analysts discuss the membership business models and debate other companies that could benefit.


Costco's low prices haven't just benefited customers -- shares have walloped the market, returning 11,000% over the past two decades. However, with prices near all-time highs, is the ride over for Costco investors? To answer that and more, we've compiled a premium research report with in-depth analysis on Costco. Simply click here now to gain instant access to this valuable investor's resource.

The relevant video segment can be found between 9:34 and 21:01.

For the full video of today's MarketFoolery, click here.

The article The Real Cash Cow for Costco and Amazon originally appeared on Fool.com.

Andy Cross has no position in any stocks mentioned. Chris Hill and Jason Moser own shares of Amazon.com. The Motley Fool recommends and owns shares of Amazon.com, Costco Wholesale, and Whole Foods Market. Try any of our Foolish newsletter services free for 30 days. We Fools don't all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.

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