Amazon.com tumbled about 4.6% to $254.18 on Tuesday after the Federal Trade Commission and 22 states alleged that the company rigged sponsored-product auctions and extracted more than $20 billion from over one million sellers and brands. The FTC complaint claims Amazon changed its rules in 2019 and later interfered in as many as 80% of sponsored-product auctions. Amazon countered that average winning bids fell 50% between 2019 and 2025 and that the system saved advertisers roughly $8 billion. Advertising delivered $19.8 billion in revenue last quarter, up 26%, and accounted for nearly 10% of Amazon's total sales. At $254.18, the stock trades 2.83% above its $247.18 GF Value estimate, leaving little valuation cushion as regulators attack one of Amazon's fastest-growing businesses.
Amazon.com IncFTC and states allege Amazon rigged ad auctions, extracting over $20 billion, threatening its fast-growing advertising business.
