Amazon Stock In Focus As Seattle Judge Rules Zulily Can Sue Retail Giant Over Monopoly Claims: Retail Bullish
By Stocktwits Inc | First Published Jan 3, 2025, 11:56 AM ISTU.S. District Judge John Chun cleared the way for Zulily to bring claims alleging Amazon’s “anti-competitive” business practices.
Shares of Amazon were up 0.38% on Thursday as the retail giant faced the possibility of an antitrust lawsuit from e-retailer Zulily. Retail sentiment stayed bullish.
According to media reports, Zulily’s lawsuit highlights Amazon’s alleged “anti-discounting” practices, which prevent other retailers from offering prices lower than those on Amazon’s platform. In an earlier lawsuit, Zulily had accused Amazon of hurting competition.
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A lawsuit could be forthcoming as Seattle-based U.S. District Judge John Chun cleared the way for Zulily to bring claims alleging Amazon’s “anti-competitive” business practices.
Chun reportedly said that any “pro-competitive justifications” may be resolved during a trial, Bloomberg reported.
Retail reaction on Stocktwits was ‘bullish’ compared to ‘bearish’ a day ago. Message volumes were in the ‘high’ zone compared to low in the same period.
Last month, Tigress Financial analyst Ivan Feinseth raised Amazon’s price target to $290 from $245 with a Buy rating, The Fly.com reported. According to the analyst, Amazon has in its favor strong retail trends, an ability to leverage generative AI, and its fulfillment capabilities. Feinseth noted that the firm’s 12-month target price reflected a potential return of 30% from current levels.
Amazon also faces a reported class action lawsuit alleging it violated federal law by using nearly $350 million in forfeited 401(k) funds, dampening retail sentiment.
The alleged violation centers on Amazon offsetting its own contributions instead of cutting administrative fees for more than 20,000 participants, Reuters reported.
Amazon shares are down 1% year-to-date.
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