Amazon.com Inc

AMZN: XNAS (USA)

Morningstar Rating for Stocks	Fair Value	Economic Moat	Capital Allocation
	$866.00	Pzch	Qyjbzxztg

Amazon: We Doubt Amazon Is Broken Up by the FTC and Instead See a Relatively Minor Fine

Dan Romanoff

Sep 27, 2023

We are maintaining our fair value estimate of $150 per share for wide-moat Amazon as the U.S. Federal Trade Commission, or FTC, was joined by 17 state attorneys general in filing a lawsuit against the company for a variety of alleged anticompetitive practices. Our initial opinion is that a settlement is the most likely outcome, with a fine being levied and possibly some minor changes in business practices, and we are highly skeptical that Amazon will be broken up. Shares still appear modestly undervalued to us.

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