AWS sets 2026 opening date for Saudi cloud region

The FTC and 22 states sued Amazon, alleging it overcharged advertisers in search auctions for over 7 years, using undisclosed markups. Amazon reportedly converted second-price auctions to first-price, increasing advertiser costs. The suit claims Amazon concealed the changes, generating billions in revenue. Affected advertisers include over 500,000 small and medium-sized businesses.

Amazon's stock has entered a technical correction, down 11% from August's high, and underperforming the S&P 500. The FTC sued Amazon over alleged overcharging of advertisers, while analysts debate its future profitability. Amazon plans significant capital expenditures, raising concerns about free cash flow.

Piper Sandler reiterated an Overweight rating on Amazon (AMZN) with a $320 price target, citing its superior return on invested capital (ROIC) compared to Meta (META) and Alphabet (GOOGL). Amazon's ROIC is projected to decline from 17% to 14% by 2026, but remains more stable than its peers. AWS revenue grew 37% YoY to $42.2B in Q2, with a contract backlog of $496B. Hedge fund positions in Amazon increased to 369 in Q2.

The DOJ is investigating eight major U.S. retailers, including Walmart and Amazon, over rising beef prices, which have increased around 10% in the past year. The probe follows a broader investigation into meatpackers and aims to address beef affordability. According to the BLS, beef prices rose 9.4% in the year ending July, driven by drought, high costs, and herd liquidation. The DOJ has not specified the exact reasons for the retailer investigation.

The FTC and 22 states sued Amazon, alleging it used artificial bids to inflate ad prices, costing advertisers billions. Amazon denies wrongdoing, stating ad costs were market-based. The case seeks penalties and restitution. Amazon generated $68B in ad revenue last year, per CNBC.

The DOJ expanded its beef price investigation to include major retailers like Walmart, Costco, and Amazon, alongside Kroger, Publix, Albertsons, Aldi, and Ahold Delhaize. The probe follows an earlier antitrust inquiry into the 'Big Four' meatpackers, which control over 85% of the U.S. beef processing market. The DOJ is examining potential antitrust violations and high beef prices, with retailers receiving letters regarding recent price increases.