Despite Amazon reporting a $4 billion loss in the first quarter, former Toys ‘R’ Us CEO Gerald Storch suggested to not bet against the popular e-commerce company.
"I still think Amazon is a great company. They're the leader in the most important segment of all of retailing, which is e-commerce," Storch told "Varney & Co." Friday.
"I'm a big fan of Amazon. I continue to own the stock. I know it's down sharply… almost 25% this year… that's flashing a big buying opportunity," he continued.
Storch’s comments come on the heels of the e-commerce giant hitting a slowdown from online shoppers since the coronavirus pandemic has subsided. As businesses open their doors, more consumers are returning to shopping in stores rather than online.
It was also hit by the declining price of Rivian Automotive shares, as the company accounted for a $7.6 billion loss in value of its stock investment. Rivian went public in late 2021 and its stock traded at close to $180 at one point. It closed Thursday at $32.18. Ford Motor Co. reported a similar write-down of the value of its Rivian investment Wednesday.
Amazon has not seen a quarterly loss in seven years, however, Storch is bullish.
"Amazon sales were up 40% over a year ago... over two years, it's still 40%," he said. "That's going to come back to normalcy as we get to the end of the year, holiday time, and all that excess capacity [Amazon has], which they did overbuild too rapidly."
He went on to say that rising costs are going to "spread over" a much bigger sales base, and Amazon will "do just fine."
Varney also asked Storch whether he sees a recession coming amid Amazon shares falling.
"I think that's a fear for everyone right now. It's clear that prices are rising faster than consumer incomes. It's also clear the Fed has to do something about it," Storch replied.
FOX Business' Ken Martin contributed to this report.