Amazon CEO Andy Jassy Says Investors Are ‘Sleeping a Bit’ on Retail as AMZN Stock Falls 7% in 6 Months

Amazon.com Inc.‘s (NASDAQ:AMZN) shares have fallen more than 7% over the past six months, and CEO Andy Jassy believes the market is underrating the company’s retail business.

Some Folks Are ‘Sleeping a Bit’ on Stores

“I think some folks are sleeping a bit on how much progress that business has made and what it’s become the last few years,” Jassy told analysts on the company’s third-quarter earnings call.

At hundreds of billions of dollars in revenue, Amazon is growing at a pace Jassy said he is “not aware” any other retailer matches.

Units have grown nearly 15% year over year so far this year, on top of more than 30 billion items sold last year, he added.

Online Shift Remains Early

The retail business has added more than $90 billion in gross sales over the past 12 months, roughly double the quarterly gross sales added by its next large U.S. competitor, Jassy said.

It is “growing meaningfully faster than other competitors” and is “consistently taking market segment share,” he added.

Nearly 80% of retail still happens in physical stores, a balance the CEO expects to “eventually flip” to e-commerce.

Revenue, EPS Miss Estimates in Q3

In the third quarter, the company posted revenue of $201.94 billion, missing the consensus estimate of $202.22 billion, according to Benzinga Pro. The company reported earnings of $1.89 per share for the quarter, missing estimates of $1.97 per share.

Amazon expects fourth-quarter revenue to be between $240 billion and $247 billion versus estimates of $244.58 billion.

Operating income is expected to be between $28.5 billion and $33.5 billion in the fourth quarter, compared to $25 billion in the comparable quarter last year.

Price Action: On Thursday, shares closed 4.25% lower at $243.79 and fell 7.12% to $226.42 in premarket trading on Friday.

Benzinga Edge rankings indicate Amazon’s stock has a Momentum score in the 48th percentile and a Growth score in the 92nd percentile.

Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.

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