Amazon (AMZN) Stock Tanking as CEO Jeff Bezos Called to Testify Over Lying to Congress

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Fri, 05/01/2020 - 15:32
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Alex Dovbnya
Even Amazon is not immune to the coronavirus as the company’s stock plunges on Jeff Bezos’ earnings call
Amazon (AMZN) Stock Tanking as CEO Jeff Bezos Called to Testify Over Lying to Congress
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Amazon (AMZN), the high-flying stock of 2020, has dropped 7.3 percent over the last 24 hours after revealing underwhelming Q1 earnings results. The company’s profit declined 29 percent compared to the previous year.   

After the stock slid five percent in pre-market trading, and it is now under even more pressure on the news about Bezos testifying before Congress.   

Amazon
image by tradingview.com

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Not too big to fail

This slump in the road happened just two weeks after Amazon reached a new all-time high. The e-commerce juggernaut was able to benefit from people ordering essential products en masse in the midst of the coronavirus pandemic

After Bezos struck a cautious note about the coronavirus pandemic during Amazon’s earnings call, it became clear that even the fourth-largest company in the world wasn’t invincible.       

The fact that Amazon is going to shell out $4 bln to combat COVID-19 also didn’t sit well with the company’s shareholders.  

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Bezos faces a subpena

U.S. lawmakers are now calling Bezos to testify before the House Judiciary Committee while accusing him of lying to Congress. 

Back in April, The Wall Street Journal shed light on Amazon employees using unfair business practices to stifle third-party competitors, which was denied by Bezos.

In their letter to the Amazon CEO, which cites the WSJ report, the lawmakers describe these actions as “perjurious.”

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About the author

Alex Dovbnya (aka AlexMorris) is a cryptocurrency expert, trader and journalist with extensive experience of covering everything related to the burgeoning industry — from price analysis to Blockchain disruption. Alex authored more than 1,000 stories for U.Today, CryptoComes and other fintech media outlets. He’s particularly interested in regulatory trends around the globe that are shaping the future of digital assets, can be contacted at alex.dovbnya@u.today.

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