Citi Sees AMZN Stock Pullback as Buying Opportunity Amid FTC Lawsuit

Citi remains bullish on Amazon stock despite a recent lawsuit filed by the Federal Trade Commission (FTC) alleging that the company overcharged advertisers by roughly $20 billion and manipulated ad auctions.

The suit claims that Amazon's sponsored advertising pricing and auction process were unfair, but Citi disagrees. The firm says its underlying advertising business remains strong, with continued advertiser spending on Amazon and improving artificial-intelligence (AI) demand at Amazon Web Services (AWS).

Citi sees the pullback in AMZN stock as a 'buying opportunity' and maintains its 'Buy' rating and $350 price target, implying potential upside of over 37% from Monday's close.