Costco Raises Membership Fees

Plus, ON Semiconductor downgraded.

Today is Thursday, July 11, 2024.

The Early Bird Index today is 75.93.

New to this newsletter? Sign up here

Costco Raises Membership Fees

Good news for investors of Costco (Nasdaq: COST) and bad news for consumers. The retail giant is finally raising membership fees, causing the stock to jump by 2.53% in after-hours trading on Wednesday.

Details: Costco will hike its membership fees by $5 for U.S. and Canada Gold Star (individual), Business, and Business add-on members, for a total annual fee of $65 starting September 1. Annual fees for executive memberships will also go up.

Also: Costco announced that June sales increased 7.4%, including an 18.4% jump in e-commerce sales.

Background: The company has been toying with raising its membership fees for some time. Investors finally got their wish.

Early Bird’s Nest Egg Gains: It might only be a $5 fee hike, but the additional revenue is critical for Costco.

  • The fee hike allows Costco to boost revenue while keeping prices competitive to retain customers. It also helps offset rising costs due to inflation.

  • Rival Sam’s Club raised membership fees in 2022.

  • Costco typically raises fees every five years. It hasn’t done this since 2017.

Final Thoughts: Costco, up 35% this year, reports earnings in September.

Sponsored
Elite Trade ClubEssential stock market insights every day before the bell rings.

Notables

Notable Earnings Today: Delta Air Lines (NYSE: DAL), PepsiCo (Nasdaq: PEP), Conagra Brands (NYSE: CAG), Bank7 (Nasdaq: BSVN).

Notable IPOs Today: VictoryShares Hedged Equity Income ETF (Nasdaq: HEJD), CoreCommodity Natural Resources ETF (Nasdaq: CCNR).

Notable Equity Crowdfunding Campaigns Ending Today: Biochar Life (Wefunder), Let’s Talk Money 2nd Channel Drop (GigaStar).

Notable Economic Events Today: Jobless Claims (8:30 a.m. ET), Consumer Price Index / Core CPI (8:30 a.m. ET), Federal Budget Balance (12:00 p.m. ET).

ON Semiconductor Downgraded

Shares of ON Semiconductor (Nasdaq: ON) fell 2.79% in after-hours trading on Wednesday due to a downgrade.

Details: Morgan Stanley (NYSE: MS) downgraded the semiconductor supplier to 'underweight'.

Background: Due to an industry-wide slowdown and increased market saturation, ON Semiconductor has struggled this year. About 1,000 employees got laid off from the company in June.

Final Thoughts: The stock is down nearly 6% this year. Among all the semiconductor stocks, it’s tough to trust this one.

WD-40’s Record Sales

Household product manufacturer WD-40 Company (Nasdaq: WDFC) jumped 12.49% in after-hours trading on Wednesday after posting good financial earnings results.

Financials: WD-40 reported earnings of $1.46 per share in the past quarter and revenue of $155 million; both were better than expected.

Quote: “We delivered another strong quarter with record sales driven by robust volume growth across all three of our trade blocs.” - Steve Brass, president and CEO.

Final Thoughts: WD-40 was down 8.96% this year before the results.

Jerome Pivots: What’s Behind Powell’s Latest Shift on Rates (Wall Street Journal)

Thank you for reading!

Forward to a friend and tell them to sign up here.

Pick winning stocks: Upgrade to Early Bird Prime

Want more investing tips? Listen to the podcast.

Show Your Support: Buy Me a Coffee.

Questions or comments? Hit reply to reach out.

The contents of Early Bird are intended for informational and entertainment purposes only. They do not constitute trade or investment recommendations and they are not financial or legal advice. Readers are encouraged to consult licensed professionals for personalized guidance regarding their financial or legal situations.