Costco Wholesale Corporation (NASDAQ:COST) shares are trading lower Wednesday after Amazon announced an expansion of its same-day grocery delivery.
What To Know: Amazon is expanding its same-day delivery service to include fresh groceries for Prime members in more than 1,000 cities and towns, with plans to reach over 2,300 locations by the end of 2025.
Customers will be able to order produce, meat, seafood, dairy, baked goods and frozen foods together with millions of other Amazon products, with free same-day delivery on orders over $25 for Prime members.
Costco shares may be trading lower as Amazon's expansion directly increases competition in a category where Costco competes, particularly fresh groceries and household staples. The added convenience of same-day delivery for Prime members could draw some shoppers away from Costco stores.
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COST Price Action: At the time of writing, Costco stock is trading 1.11% lower at $979.98, according to data from Benzinga Pro.
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