Amazon Trades at a Fraction of Costco's Valuation. Is the Discount Deserved?

Amazon's P/E ratio has dropped to 20 (from historically expensive levels) while Costco's has surged to 50, reversing their traditional valuation roles. The shift reflects market concerns about AI competition slowing Amazon Web Services' growth and investors seeking defensive positions in Costco. However, both valuations may be overreacting to potential risks, presenting a buying opportunity in Amazon once market fears subside.