AMZN Stock On Track For Worst Day In Over A Month As FTC Reportedly Prepares Ad-Price Lawsuit

The DOJ expanded its beef pricing probe to include major retailers like Walmart, Costco, Amazon, and Kroger. The investigation, initially focused on meatpackers, now examines retail price surges. Tyson Foods previously settled a lawsuit for $82.5M over beef price allegations. US beef prices hit a record high in May, impacting consumers.

Microsoft (MSFT) will now disclose standalone Azure revenue, revealing its closer proximity to Google Cloud (GOOGL) than AWS (AMZN). AWS reported $42.23B in Q4 revenue with 36.7% YoY growth, while Google Cloud posted $24.77B with 82% growth. OpenAI's AWS commitment and Anthropic's chip deal challenge Azure's AI workload dominance. Microsoft's enterprise distribution remains a key advantage, with 30M paid seats for Microsoft 365 Copilot and 90% of Fortune 500 using its AI tools.

California's Senate passed SB 690, a bill to curb lawsuits under the California Invasion of Privacy Act (CIPA), backed by tech giants like Meta, Amazon, and Google. Critics argue it strips consumer rights to sue over tracking violations, benefiting Big Tech. The bill aims to address frivolous litigation but faces opposition from privacy advocates. CIPA lawsuits have targeted small businesses and tech companies, with penalties up to $5,000 per violation.

CEOs of Apple, Tesla, Amazon, and Nvidia discussed rising memory prices and tight supply during earnings calls. Apple, Tesla, and Nvidia mentioned paying higher costs for memory, while Amazon increased its capital expenditure budget due to higher memory costs. Micron and Sandisk are positioned to benefit from the increased demand and pricing power in the memory market.

The DOJ has expanded its beef pricing probe to include Amazon and seven other grocery chains, demanding six years of pricing and profit data. Ground beef prices rose 9.4% year-over-year in July. Analysts rate AMZN a Strong Buy with a $334.05 target. The probe initially focused on meat processors, which control 85% of the U.S. market. AMZN reported Q2 earnings of $5.75 per share, beating estimates.

The U.S. Justice Department expanded its beef price probe to include eight major retailers, including Walmart, Costco, Amazon, and Kroger. The investigation follows accusations of price manipulation and collusion in the beef industry, with Tyson Foods previously settling a lawsuit for $82.5 million. The retailers have not yet responded to requests for comment.