Despite a strong first quarter in 2024, Amazon Inc. AMZN finds itself under the microscope of the Federal Trade Commission (FTC) and the Federal Communications Commission (FCC).
What Happened: Brian Sullivan, host of CNBC’s “Last Call,” shed light on the FTC’s impending investigation into Amazon, despite its impressive first quarter results during Tuesday’s episode. The potential impact on Amazon’s various businesses was brought into question.
Eric Jackson, Founder and President of EMJ Capital, sees the federal government’s actions as a move to “make a lot of noise” by targeting companies like Amazon.
“I would say take a step back, watch the business, the business the management is executing. Business just keeps getting bigger and bigger and more profitable.”
Despite the scrutiny, Jackson marveled at Amazon’s profit scale, crediting the success to cost-cutting measures implemented a year ago.
See Also: If You Invested $1000 in Chipotle Mexican Grill a Decade Ago, This is How Much It’d Be Worth Now
Why It Matters: The federal government has been cracking down hard on Big Tech, with President Joe Biden-appointed FTC commissioner Lina Khan expected to file a new antitrust lawsuit against Amazon. This lawsuit, which could be filed as early as August, has the potential to significantly impact Amazon’s dominance over the retail market across the country.
Earlier in March, the FCC announced investigations into Amazon and other retailers for alleged marketing and selling of unlawful electronic devices. Jonathan Uriarte, Director of Strategic Communications at the FCC, confirmed these investigations.
In a recent development, the FTC accused top Amazon executives, including founder Jeff Bezos and CEO Andy Jassy, of deleting text messages that could have served as evidence in the ongoing antitrust investigation.
Despite these challenges, Amazon reported first-quarter net sales of $143.3 billion, up 13% year-over-year. This beat the Street consensus estimate of $142.5 billion.
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