NEW YORK (TheStreet) -- Amazon.com's (AMZN) - Get Report top line results for the 2016 third quarter were "very strong," and are more important that its bottom line miss, Cantor Fitzgerald internet analyst Youssef Squali said on CNBC's "Squawk on the Street" on Friday morning. 

After Thursday's closing bell, the e-commerce giant reported earnings of 52 cents per share, missing analysts' estimates of 78 cents per share. Revenue rose by 29% year-over-year to $32.71 billion, slightly topping expectations of $32.69 billion.

First, investors should know that with Amazon.com, you should always focus on the top line, Squali said. If anything, the firm is raising its 2017 fourth quarter expectations by a "few hundred million" this morning. 

Second, the bottom line has always been "where the fluctuation happens" for Amazon.com, he noted. 

Finally, Amazon.com's reasoning for the miss was that it's making increased investments while things are cheap, and that makes sense, Squali claimed. The company has spent money on online video to take on Netflix (NFLX), it opened a record number of distribution facilities this quarter and CEO Jeff Bezos promised to spend $3 billion over the next few years in India. These are all weighing on the stock. 

"I think the explanation for why they missed is very, very real, and I think it's accurate," he said. 

Shares of Amazon.com were lower in late morning trading on Friday. 

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Separately, TheStreet Ratings objectively rated this stock according to its "risk-adjusted" total return prospect over a 12-month investment horizon. Not based on the news in any given day, the rating may differ from Jim Cramer's view or that of this articles's author.

TheStreet Ratings team rates Amazon.com as a Buy with a ratings score of B-. COM INC (AMZN) a BUY. This is driven by multiple strengths, which the team believes should have a greater impact than any weaknesses, and should give investors a better performance opportunity than most stocks the team covers.

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