02:15 PM EDT, 09/25/2025 (MT Newswires) -- CFRA, an independent research provider, has provided MT Newswires with the following research alert. Analysts at CFRA have summarized their opinion as follows:
AMZN and the FTC reached a settlement over its Prime subscription case, which alleged AMZN misled consumers into enrolling in Prime and made cancellations overly difficult. AMZN will pay $1.0B in civil penalties and $1.5B in consumer refunds and will revise its Prime sign-up/cancellation processes. Shares are little changed, likely reflecting relief that a regulatory overhang has been removed, while attention remains on the larger FTC monopolization case slated for trial in early 2027. Also, the $2.5B in fines and refunds is modest relative to AMZN's free cash flow, which we forecast can more than double in 2026 to about $60B and exceed $70B by 2027. This settlement could also prompt competitors to revisit their subscription practices. Subscription/loyalty programs in retail have surged in recent years as companies seek to drive/retain traffic, create more predictable revenue streams, and leverage customer data to support higher-margin businesses (e.g., retail media advertising). We keep our Strong Buy rating.