Amazon CEO Andy Jassy mentioned he does not pay a lot consideration to the corporate’s inventory worth, even after the shares misplaced half their worth in 2022 amid fears of a recession and a foul 12 months for tech shares throughout the board.
“I don’t spend a lot of my time focused on the stock price,” Jassy mentioned Thursday in an interview with CNBC’s Andrew Ross Sorkin on “Squawk Box.”
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Jassy mentioned he prefers to take a look at the inventory’s efficiency over the long run, moderately than specializing in a snapshot in time.
“In any one period of time it may be further up or further down, but it really matters what you do for customers over a long period of time,” he mentioned.
Amazon’s inventory tumbled virtually 50% in 2022, the largest annual loss for the reason that dot-com crash in 2000, when it plunged 80%. Its shares have rebounded this 12 months and are up greater than 18% 12 months to this point. But the inventory remains to be down about 35% from a 12 months in the past.
The inventory decline triggered Jassy’s compensation to crater in 2022. Jassy obtained compensation valued at about $1.3 million final 12 months, in accordance with securities filings. In 2021, when Jassy took over from founder Jeff Bezos, he was awarded a pay bundle value roughly $212 million, of which a good portion was composed of Amazon inventory.
Amazon mentioned in a proxy submitting Thursday it didn’t grant Jassy any new inventory in 2022.
Investors have applauded Jassy’s cost-cutting in latest months. Amazon went on a hiring and constructing binge in the course of the pandemic on account of a increase in e-commerce. That demand began to chill final 12 months, and Jassy and different Amazon executives admitted they misjudged how lengthy the surge would final.
Amazon initiated the most important layoffs in its 29-year historical past, reduce on a number of experimental initiatives and froze company hiring. It additionally took steps to reevaluate its achievement community to higher optimize prices, after its footprint grew bigger and the corporate spent more cash to ship items rapidly from one nook of the nation to a different, Jassy wrote in his shareholder letter Thursday.
The issues lengthen past rising prices. Amazon can also be grappling with slowing progress in its two largest companies, retail and cloud computing, as inflation-weary shoppers are extra cautious about discretionary purchases and enterprises pull again on their cloud spending amid rising inflation and a worsening financial outlook.
“Despite growing 29% year-over-year (“YoY”) in 2022 on a $62B revenue base, AWS faces short-term headwinds right now as companies are being more cautious in spending given the challenging, current macroeconomic conditions,” Jassy mentioned in his letter.
“We have a lot more growth in front of us,” Jassy advised CNBC. “The fact that we were able to meaningfully streamline our costs while at the same time preserving the strategic long-term investments that we believe can meaningfully change customer experiences in Amazon for the long term, I think we have a lot to look forward to.”