COST - Will Costco Stock Soar After Its Membership Fee Hike? Here's What History Says.
2024-07-20 04:30:00 ET
Costco (NASDAQ: COST) just answered investors' biggest question. With the warehouse giant's last fee increase in 2017, investors have been wondering when the next one would happen. After all, the company has traditionally hiked fees once every five years.
Finally, earlier this month, Costco made the move, saying it would increase its standard and premium membership fees as of Sept. 1. An increase in fee income will add to Costco's revenue, which is great news, but it does come with one element of risk: It also could result in some people dropping their memberships or potential new members deciding to go elsewhere.
Right now, as we consider whether this fee hike will benefit revenue or not, we may wonder what path Costco stock will take in the coming months. Will the promise of additional revenue outweigh any risks and lead the stock higher? Let's take a look at what history says.
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Will Costco Stock Soar After Its Membership Fee Hike? Here's What History Says.