Why Is Amazon.Com Stock Trading Lower Monday?

Amazon.Com, Inc AMZN stock is trading lower on Monday as concerning reports surface. 

Last Friday, the company requested a federal court to dismiss a U.S. government antitrust lawsuit, arguing that the allegations of using illegal strategies to increase profits in its online retail operations were unfounded. 

The U.S. Federal Trade Commission (FTC) had filed the lawsuit in September, accusing Amazon of anticompetitive practices, including using an algorithm, Project Nessie, that allegedly raised prices by over $1 billion, Reuters reports.

Amazon emphasized its commitment to matching competitors' discounts, offering competitively priced deals, and providing top-notch delivery services for its Prime subscribers. 

Another point of contention in the lawsuit was Amazon's requirement for sellers to use its Prime feature to utilize Amazon's logistics and delivery services. 

Amazon countered that using its fulfillment services was voluntary. The company also mentioned that its fees for sellers using these services increased from 27% in 2014 to 39.5% in 2018.

Furthermore, Amazon argued that it faces competition from other online superstores and specialized retailers, making the FTC's definition of an 'online superstore' market implausible. 

Meanwhile, Vaishali Kasture, the interim head of Amazon Web Services (AWS) India and South Asia, has resigned from Amazon just seven months after taking up the top role, TechCrunch reports.

AWS, under Amazon, has been a key player in India, a vital market for the company. AWS has engaged with hundreds of thousands of companies in India, the world's second-largest internet market, and has secured collaborations with many government entities.

Kasture, who had been with Amazon for about five years, was appointed interim leader of AWS India and South Asia's commercial business in June. Her departure comes after her predecessor, Puneet Chandok, left to join Microsoft Corp MSFT India. 

Until recently, Kasture was vocal about the growth and potential of AWS in India. 

In a LinkedIn post, she highlighted Amazon's planned investments in India, totaling over $16.4 billion by 2030, likely contributing around $23 billion to India's GDP. 

She also emphasized AWS's commitment to training and skill development, having trained over 4 million people in India through various programs.

Price Action: AMZN shares traded lower by 1.65% at $144.99 on the last check Monday.