Will FTC Lawsuit End Up Breaking Amazon? Analyst Says Unlikely
Portfolio Pulse from Anusuya Lahiri
The Federal Trade Commission (FTC) is reportedly preparing to file an antitrust lawsuit against Amazon (AMZN), which could suggest structural changes that may result in a company breakup. However, Wedbush analyst Michael Pachter believes that an outcome that materially alters Amazon's structure is unlikely, given the historical application of antitrust legislation and the evidence of a highly competitive U.S. retail market. Pachter reiterated Amazon with an Outperform and a $180 price target, suggesting buying Amazon shares on any weakness related to the FTC case headlines.
September 15, 2023 | 5:14 pm
News sentiment analysis
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NEUTRAL IMPACT
Walmart was mentioned as having a significantly larger 1P business than Amazon and a third-party marketplace that offers services to sellers, indicating a competitive retail market.
While Walmart was mentioned in the context of the competitive retail market, the news does not directly impact the company's operations or financials. Therefore, the short-term impact on the stock price is likely to be neutral.
CONFIDENCE 75
IMPORTANCE 40
RELEVANCE 50
POSITIVE IMPACT
Despite the FTC's impending lawsuit, Amazon's business structure is unlikely to be materially altered, according to Wedbush analyst Michael Pachter. He reiterated an Outperform rating and a $180 price target for Amazon, suggesting buying on any weakness.
The analyst's positive outlook on Amazon, despite the impending FTC lawsuit, suggests confidence in the company's resilience and continued success. This could potentially drive investor interest and positively impact the stock price in the short term.
CONFIDENCE 85
IMPORTANCE 80
RELEVANCE 100