Citi Sees Opportunity Amid FTC Lawsuit Against Amazon

Citi has maintained its 'Buy' rating and $350 price target for Amazon (AMZN) stock, despite the Federal Trade Commission's lawsuit alleging the company overcharged advertisers by roughly $20 billion and manipulated ad auctions.

The firm sees a 'buying opportunity' in the current pullback, citing continued advertiser spending on Amazon and accelerating AI demand at AWS. Citi expects this growth to support AWS and reinforce Amazon's broader earnings outlook.

Amazon rejected the FTC's claims, calling the lawsuit 'misguided' and saying it 'strongly disagrees' with the allegations. The company stated that its pricing practices are designed to provide customers with competitive prices across a broad selection of products.