Here's why Jim Cramer is putting Costco stock in the penalty box
Jim Cramer said Thursday that "something's wrong" at Costco, and he plans to get to the bottom of it one way or another.
TL;DR
- Jim Cramer believes there are underlying issues at Costco.
- Costco's August same-store sales slightly exceeded expectations but were not considered perfect execution.
- The company faces challenges in retaining younger members who signed up online.
- Costco's stock has fallen from its all-time high and is underperforming.
- Decelerating traffic and membership renewal rates are primary concerns.
- Costco's operating income is heavily reliant on membership fees.
- Cramer is reassessing Costco's position in his investment portfolio.