Costco's Digital Sales Jumped 21% and Gas Volumes Hit a Record. So Why Did COST Stock Drop 5%?

Costco reported strong Q3 earnings with 21% digital sales growth and record gas volumes, but the stock fell 5% due to concerns about high valuation (49x earnings), margin compression from price cuts and higher transportation costs, and investor worries that gains were inflated by temporary gas price spikes. A broader market sell-off following a stronger-than-expected jobs report also contributed to the decline.