Amazon stock pushed higher Friday but is still on pace for its sixth straight weekly loss. The e-commerce and cloud-computing giant's shares have been hit by concerns about consumer spending, tariffs and the broader market correction, though investors also got a reminder this week of a looming legal showdown with federal regulators.
On the stock market today, Amazon stock is up 1.8% at 197.27 in recent trades. Shares are still below Amazon's 200-day moving average. Amazon broke below the key long-term support level on Monday and then again Thursday after a short-lived bounceback. Amazon last closed a week below its 200-day line in September.
The slump for Amazon began with its fourth-quarter results in early February, which beat earnings estimates but included a lower-than-expected sales forecast for Q1. Shares have tumbled 19% from a record high of 242.52 reached Feb. 4, as of early Friday.
FTC Continues Deceptive Practices Case
Meanwhile, the Federal Trade Commission clarified Wednesday that it still has the resources to pursue a deceptive practices case against Amazon. That was despite a court filing earlier that same day that requested a delay due to "resource constraints." The initial request was "wrong" and the FTC has the resources to prepare for a September trial, according to a legal filing reported by CNBC.
The FTC complaint, launched in June 2023, alleges that Amazon enrolled customers into its Amazon Prime program without their consent and made it difficult to cancel the $139 annual membership. It is a separate case from the broader antitrust challenge the FTC filed against Amazon in September 2023.
Former Democratic FTC Chair Lina Khan brought both cases. Republican FTC Chair Andrew Ferguson took over the role in late January, leaving investors debating what approach the new leadership would take to Big Tech regulation. Khan was seen as an aggressive challenger to Big Tech's power, launching the legal challenge to Amazon as well as Meta Platforms and Microsoft.
Amazon Stock: Longest Weekly Losing Streak Since 2022
Including Friday morning's gains, Amazon stock is down about 1% overall on the week. If the weekly loss holds, it would mark Amazon's longest losing streak on its weekly chart since shares fell for eight straight weeks starting in April 2022, according to IBD MarketSurge. Amazon stock lost a more drastic 30% during that slide and did not recover fully until late 2023.
More recently, Amazon stock fell five straight weeks between July 12 and Aug. 9 of last year. Shares lost about 16% during that slide but recovered by November.
The IBD Stock Checkup tool shows Amazon stock holds a 76 out of a best-possible 99 IBD Composite Rating. That's down from a perfect 99 in early February. The score combines five separate proprietary ratings into one rating. The best growth stocks have a Composite Rating of 90 or better.
