Costco Stock Slides 1.15% Amid Surge in 22nd-Highest Daily Liquidity as Policy Pivot on Abortion Pill Sparks Debate

On August 22, 2025, Costco (COST) closed with a 1.15% decline, despite a 44.2% surge in trading volume to $3.01 billion, ranking it 22nd in daily liquidity. The stock’s performance coincided with a major policy announcement regarding its pharmacy operations. Costco confirmed it will not sell the abortion pill mifepristone at its U.S. pharmacies, citing a "lack of demand from our members and other patients." The decision aligns with the company’s strategy to direct prescription fulfillment to medical providers, a move that has drawn praise from conservative advocacy groups. Alliance Defending Freedom, a prominent anti-abortion organization, lauded the decision as a victory for ethical business practices and shareholder interests.

The policy shift has sparked mixed market reactions. While the company’s rationale emphasizes operational efficiency and alignment with customer preferences, analysts note potential reputational risks. The decision may alienate customers who value retail access to reproductive health services, a growing concern amid polarized societal debates. Additionally, stretched valuations and broader market skepticism about peak margins have contributed to the stock’s decline. Despite long-term growth indicators like strong membership renewals and margin expansion, investors appear cautious about near-term challenges.

The strategy of buying the top 500 stocks by daily trading volume and holding them for one day from 2022 to 2025 yielded a compound annual growth rate of 6.98%, with a maximum drawdown of 15.59% recorded during the backtest period. The approach demonstrated consistent growth over time but highlighted the volatility inherent in high-volume trading strategies, particularly during the 2023 market downturn. This underscores the necessity of robust risk management in volume-driven investment approaches.