Costco Wholesale Corp (NASDAQ: COST) has been on an unstoppable rally since late 2022, consistently hitting new highs and rewarding long-term investors. That momentum carried into February when the stock reached an all-time record. However, a combination of a broader market sell-off and a slight earnings miss last week has led to a sharp reversal. Shares are now down nearly 15% from their peak, wiping out all gains since last November.
While a pullback like this isn’t unusual after a strong run, the magnitude of the decline has caught many by surprise. Investor sentiment has turned sharply risk-off in recent weeks, making it difficult for even high-quality stocks like Costco to hold onto gains.
