Amazon: Should Investors Sell With an FTC Lawsuit Expected Any Day?

A recent report by The Wall Street Journal claims that the Federal Trade Commission (FTC) is preparing to file a sweeping antitrust lawsuit against tech giant Amazon (NASDAQ: AMZN), perhaps as soon as this month. This isn't surprising as the FTC has battled Big Tech's hold on several industries with recent lawsuits against Google parent Alphabet and social media giant Meta Platforms (formerly Facebook), an existing suit against Amazon, and several investigations in progress.

Whether the lawsuits are justified and Big Tech wields too much power is for others to sort out. This article focuses on how investors should react.

The current lawsuit against Amazon is narrow and relates to Amazon Prime signups when customers check out, but the as-yet-unfiled case could be significantly more encompassing. Reports say it could result in the breakup of the company, but there are other possibilities as well. Let's look at each.

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Source Fool.com