Amazon weakness on FTC lawsuit would be a buying opportunity: Wedbush
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Should Amazon.com (NASDAQ:AMZN) see any weakness thanks to the Federal Trade Commission, Wedbush said it would buy.
Shares are down 1% in pre-market trading on Friday morning.
The FTC is reportedly preparing to file an antitrust lawsuit against AMZN, which could result in structural remedies that could result in a breakup of the company.
âHowever, we think an outcome that materially alters the structure of the business is unlikely as the historical application of antitrust legislation over the past half- century has largely favored businesses that improve consumer welfare,â analysts led by Scott Devitt wrote in a note.
âThere is evidence that U.S. retail continues to function as a highly competitive market both online and offline despite Amazonâs success. We would be buyers of Amazon shares on any weakness related to the headlines of an FTC case.â
Media reports show that the potential lawsuit would focus on AMZNâs marketplace, including scrutiny of third-party seller services, notably logistics and advertising, as well as allegations that the company prevents sellers from setting lower prices for their goods on other platforms.
Notably, the Seattle-based giant ranked number one for value and selection in the 2023 American Customer Satisfaction Index among online retailers, and number 2 overall across online retail customer satisfaction.
AMZN shares are up 68% so far this year.

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