Amazon Stock Falls Below Key Technical Level Amid Legal and Spending Concerns
Amazon (AMZN) shares have declined by about 11% since reaching an all-time high in August, falling below its key 100-day moving average. The stock has underperformed the S&P 500 this year, rising just 10% compared to a 12% gain for the benchmark index. A new lawsuit filed by the Federal Trade Commission (FTC) and 22 states is adding pressure on Amazon's advertising business, alleging it overcharged advertisers $20 billion since 2019 through undisclosed reserve pricing mechanisms. Investors are also concerned about Amazon’s aggressive capital spending plans for AI infrastructure. The company recently raised its full-year 2026 capex budget to approximately $220 billion and is expected to spend even more in the following years, potentially leading to negative free cash flow of around -$50 billion annually through at least 2028.
Tickers: $AMZN
Topics: advertising practices Amazon stock decline capital expenditures FTC lawsuit