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FTC Lawsuit
Shares in Amazon are trading a little higher today ahead of the open. The move comes despite news that the FTC is preparing a lawsuit against Amazon, based on its claim that millions of consumers have been conned into signing up to Amazon Prime, with an annual membership cost of $139. The FTC claims that the firm knowingly used deceptive tactics as part of an internal operation called Iliad in order to coerce customers into signing up for the paid subscription service.
Amazon Accused of Tricking Customers
The FTC claims that Amazon used trickery within its interface designs to confused people into signing up for Prime without knowing what they were doing. In many cases, the FTC claims that ordering goods without signing up for Prime was made very hard to do, leading to customers signing up unwittingly. Additionally, the FTC claims that Amazon slowed or rejected attempts to cancel subscriptions, leading to users incurring unwanted costs.
Near-Term Risks for Amazon
Amazon shares have been on an impressive run this year, currently sitting around 61% higher against the YTD lows. Given the broader rally in stocks, particularly tech stocks, Amazon shares have done very well. Looking ahead, however, there are some downside risks around the Fed. With the market expecting fresh hawkishness
Technical Views
Amazon
The rally in Amazon has seen the stock trading higher within a well-defined bull channel. Price has recently broken above the 123.79 level and while above here, the focus is on a further push higher with 137.81 the next resistance level to note. To the downside, a break of 123.79 will open the way for a test of 112.63 next.
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With 10 years of experience as a private trader and professional market analyst under his belt, James has carved out an impressive industry reputation. Able to both dissect and explain the key fundamental developments in the market, he communicates their importance and relevance in a succinct and straight forward manner.