Amazon shares fell nearly 2% after the FTC and 22 state attorneys general sued the company over its advertising practices. CNBC's Jim Cramer dismissed the sell-off as overdone, comparing the case to the Justice Department's unsuccessful antitrust suit against Google.
Amazon shares fell nearly 2% following news Monday that it's being sued by the FTC and 22 state attorneys general, who allege the company engaged in deceptive and unfair practices in its advertising business.
Amazon pushes back on the claims
Amazon responded in a blog post calling the lawsuit unwarranted, saying there was no harm to consumers, and asserting that it offers the lowest daily prices on a wide selection of products.
Cramer says the reaction is overblown
Jim Cramer, speaking on the CNBC Investing Club's Tuesday "Morning Meeting" livestream, drew a parallel to the Justice Department's antitrust case against Google, saying that case did not succeed. He argued investors dumping the stock over the suit are overreacting: According to CNBC: "You’re not being historical. You’re hysterical,"
Cramer's charitable trust holds a position in Amazon stock, according to the report.
The Amazon news came as broader markets also fell to start September, with rising oil prices and inflation concerns pushing bond yields higher and raising questions over whether the Federal Reserve will lift interest rates later this month.
Source: CNBC
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