Amazon faces FTC lawsuit amid AWS growth and investor activity

Amazon is facing legal and market fluctuations following a lawsuit filed by the Federal Trade Commission and 22 state attorneys general. The complaint alleges that the company misrepresented its ad auctions, claiming it described them as second-price auctions while frequently charging advertisers their own winning bids. Amazon disputes these allegations, stating its methods saved advertisers over $8 billion between 2021 and 2025.

Despite the litigation, Amazon's advertising revenue grew 26% year-over-year in the second quarter to approximately $19.8 billion. Additionally, Amazon Web Services (AWS) continues to show strong momentum, with revenue rising 37% year-over-year to $42.2 billion in the second quarter. AWS operating income also saw a significant increase of roughly 64%.

In terms of institutional activity, Okabena Investment Services Inc. increased its Amazon stake by 45.8% during the second quarter. Other investment firms, including Bard Associates Inc. and Longfellow Investment Management Co. LLC, also acquired new positions in the company. Institutional investors currently hold 72.2% of Amazon's stock.