FTC sues Amazon: Buy the dip in the stock, analyst says

09/27/2023 22:06
FTC sues Amazon: Buy the dip in the stock, analyst says

Amazon (AMZN) is facing an antitrust lawsuit from the Federal Trade Commission and 17 states, alleging the e-commerce platform abused its monopoly power by unfairly promoting itself at the expense of third-party retailers who rely on the platform for distribution. It has prompted some questions about whether the suit could results in a break up of the tech giant.  D.A. Davidson Managing Director and Senior Research Analyst Tom Forte joins Yahoo Finance to break down impacts of the lawsuit for both the company and for investors. Forte points out how advantageous a potential separation of the company would be. "You could make an argument that the some of the parts are worth more than the whole, if it was broke into a marketplace, a first-party e-commerce company, and cloud computing company, there could be an upside for share holders," Forte explains. Amazon's stock dipped on the news it was being sued. Forte says it is a buying opportunity, citing how Alphabet's (GOOG, GOOGL) stock has traded since it was sued.  For more expert insight and the latest market action, click here to watch this full episode of Yahoo Finance Live.

Amazon (AMZN) is facing an antitrust lawsuit from the Federal Trade Commission and 17 states, alleging the e-commerce platform abused its monopoly power by unfairly promoting itself at the expense of third-party retailers who rely on the platform for distribution. It has prompted some questions about whether the suit could results in a break up of the tech giant.

D.A. Davidson Managing Director and Senior Research Analyst Tom Forte joins Yahoo Finance to break down impacts of the lawsuit for both the company and for investors. Forte points out how advantageous a potential separation of the company would be. "You could make an argument that the some of the parts are worth more than the whole, if it was broke into a marketplace, a first-party e-commerce company, and cloud computing company, there could be an upside for share holders," Forte explains. Amazon's stock dipped on the news it was being sued. Forte says it is a buying opportunity, citing how Alphabet's (GOOG, GOOGL) stock has traded since it was sued.

For more expert insight and the latest market action, click here to watch this full episode of Yahoo Finance Live.

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