Amazon’s (NASDAQ:AMZN) cloud computing arm, Amazon Web Services (AWS), has been slapped with a $525 million fine in a patent dispute case with tech company Kove, Reuters reported. An Illinois federal jury ruled that AWS has breached three of Kove’s patent rights in data-storage technology.
Kove filed a lawsuit against Amazon in 2018. AMZN had denied the accusations, contending that the patents lacked validity. Amazon has expressed disagreement with the verdict and plans to appeal the court’s decision.
AMZN’s Risk Analysis
Amazon has a long history of dealing with legal claims, litigation, and other proceedings related to patents, consumer protection, competition, antitrust, and other matters.
TipRanks’ Risk Analysis tool shows that AMZN’s legal and regulatory risk exposure is considerably higher than the industry average. Legal and regulatory risks account for 25% of AMZN’s total risks, much higher than the industry average of 18%.
What is the Prediction for Amazon Stock?
Amazon stock is up over 86% in one year. The company’s efforts to cut costs, bolster its artificial intelligence (AI) capabilities, and lead in the cloud and e-commerce space keep analysts bullish.
All 41 analysts covering Amazon stock suggest buying it. The analysts’ average AMZN stock price target of $210 implies 12.93% upside potential.
