Costco Wholesale‘s conference call with investors about its latest quarterly earnings report is “very disturbing,” CNBC’s Jim Cramer said Friday.

In the call, Costco Chief Financial Officer Richard Galanti addressed concerns about Amazon Prime accounts impacting Costco memberships.

Galanti said slowing membership signups were a result in part of the timing of new initiatives the company undertook. “As it relates to the publicity and the news and the noise around Amazon and Whole Foods, all we can do is perform,” he said.

“It was very disturbing,” according to Cramer, “because it basically just says, ‘Amazon is coming for you guys and we don’t even care what you say.”

Shares of Costco were more than 6 percent lower Friday, one day after the retailer reported a decline in quarterly gross margins fueled concerns of an intensifying grocer price war.

Investors have been wary that Costco’s business model, which mainly generates revenue through a niche membership club, faces increased competition from online giant Amazon.com. The e-commerce giant has begun to shake up the grocery space with its acquisition of Whole Foods.

Costco’s shares have fallen more than 7 percent since the Amazon-Whole Foods deal was announced in June.

Investors do not want to pay “25 times earnings for a company that is up against Amazon,” Cramer said Friday on “Squawk on the Street.”

The host of CNBC’s “Mad Money” added that Costco’s stock has had a great run and its stores have “put up some unbelievable numbers in every single aisle,” but “no one is listening”

“They’re not signing up like they used to be. Do millennials still go there?” he said. “Every question of the undercurrent is Amazon.”

“It’s not a comedy, it’s a tragedy,” Cramer said.

—Reuters contributed to this report.

Source: Tech CNBC
Cramer says Costco's latest earnings call about Amazon is 'disturbing'