Big tech is clearly in the crosshairs of President Joe Biden’s administration as the government takes aim at some of the biggest tech companies in the world.
Earlier this year, the U.S. Justice Department announced that it was suing Google for “monopolizing digital advertising” in violation of the Sherman Act.
“This case is about the future of the internet and whether Google’s search engine will ever face meaningful competition,” DOJ lawyer Kenneth Dintzer said, according to the AP.
Soon, Alphabet (GOOGL) – Get Free Report could have some company in corporate antitrust court as there are reports that the Federal Trade Commission is preparing to file an antitrust lawsuit against Amazon (AMZN) – Get Free Report focusing on the Amazon marketplace that could eventually result in the breakup of the company.
Wedbush published a new note on the lawsuit, saying that it remains bullish on the company because no matter the faults of Amazon’s e-commerce platform, consumers seem to love Amazon.
“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,” the Wedbush note said, according to a post from X user @BigBullCap.
“Further, we believe there is evidence that U.S. retail continues to function as a highly competitive market both online and offline despite Amazon’s success. We would be buyers of Amazon shares on any weakness related to the headlines of an FTC case.”
Wedbush says that based on its own survey of 1,200 U.S. consumers in August, Americans are very satisfied with Amazon as 40% of respondents who subscribe to Amazon Prime reporting that their shopping experience with Amazon has improved over the past 12 months compared to 13% saying their experience has gotten worse.
Wedbush reiterated its outperform rating on the company’s stock recently while reiterating its $180 price target.
Amazon shares were down 0.5% to $139.66 per share in afternoon trading Monday.
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