Costco wants to make sure only people who paid for their special cards can use them. They are doing this because more people shared cards during the pandemic, and they want to keep making money from those who pay for the cards. Other companies like Netflix do similar things to protect their businesses. Read from source...
- The title is misleading and sensationalized. It does not reflect the actual content of the article which focuses on Costco's anti-sharing measures rather than cracking a code or discovering a breakthrough strategy. A more accurate title could be "Costco Tightens Membership Rules To Prevent Sharing And Boost Revenue".
- The author uses vague and ambiguous terms like "enhanced membership measures" without explaining what they are or how they work. This creates confusion and suspense for the reader, but also weakens the credibility of the article. A more transparent and informative writing style could be employed to clarify Costco's policies and practices.
- The author relies heavily on statistics and numbers to support their claims, such as the 93% renewal rate in 2022 and the rise in membership sharing during the pandemic. However, they do not provide any sources or references for these data, making them questionable and unverifiable. A more rigorous and academic approach could be taken to cite reputable and relevant sources that back up the claims and arguments of the article.
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Key points:
- Costco is cracking down on membership sharing to prevent unauthorized use of cards and protect genuine members' privileges.
- The company has introduced enhanced measures inspired by Netflix and other companies that face similar challenges.
- Costco's renewal rate was high in 2022, indicating customer loyalty and satisfaction.
- This decision is expected to boost the company's revenue streams and stock success in 2024.
- Buy Costco stock because it is undervalued compared to its peers and has a strong brand loyalty among customers, which will help it overcome any short-term challenges from the crackdown on membership sharing.
- Sell Netflix stock because it is overvalued and faces increasing competition from other streaming platforms, such as Disney+ and HBO Max, which offer more diverse content at lower prices.