April 17, 2023: -Amazon CEO Andy Jassy stated that he doesn’t focus much on the firm’s stock price, even following the shares losing half their value in 2022 between fears of a recession and a bad year for tech stocks.
“I don’t spend much of my time focused on the stock cost,” Jassy said Thursday in an interview.
Jassy said he looks at the stock’s performance more than the long term instead of focusing on a real-time snapshot.
“In any one span of time, it may be further increased or further down, but it matters what you do for consumers over a long period,” he said.
Amazon’s stock decreased by almost 50% in 2022, the most significant annual loss since the dot-com crash in 2000, when it increased by 80%. Its shares have rebounded and are up over 18% yearly. But the stock is still decreased nearly 35% from a year ago.
Jassy received compensation valued at nearly $1.3 million last year, according to securities filings. In 2021, Jassy took more from founder Jeff Bezos, awarding a pay package worth roughly $212 million, of which a significant portion comprised Amazon stock. The stock refusal caused Jassy’s compensation to crater in 2022.
Amazon said in a proxy filing it did not grant Jassy any recent stock in 2022.
Investors have appreciated Jassy’s cost-cutting in the latest months. Amazon went on an employment and building binge during the pandemic due to a boom in e-commerce. That demand began to cool in the previous year, and Jassy and other Amazon executives agreed they misjudged how long the increase would survive.
Amazon initiated the most extensive layoffs in its 29-year history, cut back on several experimental assignments and froze corporate hiring. It also took steps to reevaluate its fulfilment network to optimize costs better after its footprint grew and the firm spent more money to provide goods quickly from one end of the place to another, Jassy wrote in his shareholder letter on Thursday.
The concerns extend beyond increasing costs. Amazon is also grappling with a slowing increase in its two most prominent businesses, retail and cloud computing. Inflation-weary consumers are more cautious regarding discretionary purchases, and enterprises state back on their cloud spending amid increasing inflation and a worsening economic outlook.