Should You Buy or Sell AMZN Stock as Amazon Feuds with Perplexity?

Core Viewpoint - Amazon has issued a "cease and desist" letter to AI startup Perplexity, claiming its AI shopping assistant Comet violates Amazon's terms of service, posing a threat to Amazon's digital advertising revenue [1][2] Group 1: Legal Dispute - Amazon has requested Perplexity to remove its brand from the Comet experience due to a "significantly degraded shopping and customer service experience" [2] - Perplexity has labeled Amazon's actions as an "aggressive legal threat" and a "first legal salvo against an AI company," indicating broader implications for internet users [2][4] Group 2: Financial Impact - Amazon's CEO Andy Jassy expressed optimism about AI shopping agents, suggesting they could increase online shopping, which is beneficial for Amazon's business model [3] - In Q3 2025, Amazon generated $17.7 billion from digital advertising, marking a 24% increase from the same quarter the previous year, outpacing growth in its e-commerce and AWS segments [3] Group 3: Market Dynamics - The conflict highlights the tension between traditional e-commerce practices and emerging AI technologies, with Amazon prioritizing its advertising revenue over potential competition from AI shopping agents [4]