Costco Stocks “in Freefall,” Admits Jim Cramer

Group 1 - Jim Cramer has consistently discussed Costco Wholesale Corporation (NASDAQ:COST) alongside Walmart, maintaining an optimistic outlook on both companies throughout 2025 [2] - Cramer emphasizes Costco's significant role in the economy by providing affordable groceries and has praised its strategy of launching in-house products to compete with expensive brands [2] - Despite a recent decline of 4.7% in Costco's shares over the last month, Cramer expressed disappointment but stated he would not sell the stock, indicating a long-term holding perspective [2][3] Group 2 - Cramer noted that Costco's stock is currently in a challenging position with a high price-to-earnings (PE) ratio of 53, suggesting that investors should wait for the PE to drop below 50 before buying [3] - While acknowledging Costco's potential, Cramer believes that certain AI stocks may offer better returns with lower risk, indicating a shift in focus for some investors [3]