Amazon.com, Inc.
Amazon has agreed to pay multi-million dollar fines as a result, though these settlements have yet to adversely affect Amazon's stock price.
The FTC's inquiry into Amazon's Alexa uncovered alarming privacy gaps regarding children's interaction with the voice assistant.
Amazon has committed to paying a $25 million fine for not deleting recordings upon parents' requests and for holding onto them unnecessarily long.
This settlement puts the spotlight on safeguarding children's privacy in our modern digital era.
The recent Ring doorbell case uncovered unsettling issues surrounding the data access practices of Amazon and its contractors.
As part of a resolution with the Federal Trade Commission, Amazon subsidiary Ring has agreed to pay $5.8 million and commit to disclosing the extent of data access provided to its customers and contractors.
This comes after serious concerns were raised about Amazon employees having unlimited access to sensitive video data collected by Ring, prompting significant privacy concerns.
Despite the recent settlements, Amazon's stock price has remained unaffected, and in fact, it has experienced a 3% rise since the announcement.
On Friday, the stock price displayed a 1.7% gap up, demonstrating strong buying momentum.
Amazon's stock has surged by 45% this year, an impressive feat worth noting. However, the stock faces a major test at the weekly 50 simple moving average, which currently sits at $132.
This barrier will determine the stock's future direction and its ability to retain its strength.
Considering the recent impulsive bullish momentum, a potential pullback on the horizon could come down to the daily 20 simple moving average as a support level before witnessing a continuation of the long-term bullish trend.
This pullback could present a buying opportunity for investors who believe in Amazon's growth potential despite the privacy concerns.
After the closing bell on Friday, June 2, the stock closed at $124.25, trading up by 1.21%.
