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Amazon stock reacts to analyst ratings shift, lawsuits
Yahoo Financeยท 2025-10-15 01:03
Core Viewpoint - Amazon's stock has experienced a decline of 1.2% on Tuesday and 4.3% this month, despite positive sentiment from Bank of America analysts regarding Q3 spending trends, as the company prepares for the holiday season by hiring 250,000 seasonal employees [1][2]. Group 1: Stock Performance and Hiring Plans - Amazon's stock is down 3% this quarter, with efforts to regain momentum as the company ramps up e-commerce and logistics [1][3]. - The company plans to hire 250,000 seasonal employees across the U.S. to support its fulfillment and transportation networks, a strategy consistent with previous years [1][2]. Group 2: Analyst Sentiment - Bank of America analysts noted a 1-point increase in Amazon's Q3 year-on-year online spending compared to Q2, maintaining a bullish outlook on the company's eCommerce share gains and retail margins [4]. - Analysts reiterated a Buy rating on Amazon shares, citing better-than-expected performance [4]. Group 3: Legal and Regulatory Challenges - Amazon reached a $2.5 billion settlement with the Federal Trade Commission (FTC) over allegations of deceptive practices related to Prime memberships, which includes a $1.5 billion refund to affected customers and a $1 billion civil penalty [5][6]. - The company is also facing a class-action lawsuit in Washington State regarding alleged inflation of list prices and misleading discount representations [7].