AutoZone misses profit targets and experiences a decline in stock price

The American retailer for auto parts and accessories, AutoZone, faced a 0.9% decline in its stock price following the release of its third-quarter report. The reason for this was the failure to meet Wall Street's profit expectations. While the revenue of $6.24 billion met the forecasts, the earnings per share of $48.71 fell short of the expected consensus of $50.68. A closer examination of the results indicated signs of pressure on the company's profitability. The operating margin dropped to 19.2%, below the 20.9% from the same period the previous year. These developments were not well-received in the market, raising concerns among investors about AutoZone's performance. At the same time, a significant drop in price can also present opportunities for entry. Whether buying now is worthwhile remains to be weighed. AutoZone shares typically exhibit low volatility, and today's movement suggests that the market assigns importance to this event, even if it may not lead to a fundamental rethinking of business perceptions. Since the beginning of the year, AutoZone has seen an increase of 25.6% and is trading at $4,090 per share, near its 52-week high of $4,355 in September 2025. An investment of $1,000 five years ago would now be worth $3,616. The principles from the book "Gorilla Game: Picking Winners In High Technology" may be less known to young investors, but when applied to today's times, enterprise software stocks with generative AI could unleash the potential of future "Gorillas." In this spirit, we are pleased to present in a special report a profitable enterprise software stock that benefits from the wave of automation and aims to lead in generative AI.