The Amazon share price is trading lower in premarket trading after several US lawmakers have asked the US competition regulator to block Amazon’s proposed acquisition of iRobot. According to an Axios Report, US Senator Elizabeth Warren and six members of the House of Representatives are asking the Federal Trade Commission to block the transaction.
The letter making this request cites what the Senator calls “Amazon’s record of infringing on consumer privacy and ongoing history of anticompetitive mergers to increase their monopoly power.”
The pushback from US lawmakers comes after the Federal Trade Commission (FTC) said it had sent a second request to the companies regarding the asking for additional material and documentation regarding the transaction.
Amazon had agreed to an all-cash deal to acquire consumer robot company iRobot at $61/share, which takes the transaction value to $1.7 billion. Investors are reacting negatively to the development, which has sent the Amazon share price down by 1.45% with a little more than an hour to Thursday’s market open.
The price action continues to jostle around the 115.78 support level (neckline of 12 May/24 May 2022 double bottom). A breakdown of this pivot sends the price toward the 109.33 pivot (15 June high and 12 July 2022 low). Further price deterioration makes 102.47 (12 May and 30 June 2022 lows) available as new support. 91.52 becomes a new harvest point for the bears only if there is a steep decline.
On the flip side, a penetration close above the 115.78 support gives the bulls some footing to push toward the 2 June/22 July highs at 125.70. If the bulls uncap this barrier, they will have clear skies to aim for the 135.88 resistance (27 April low and 22 August high). The 28 April and 16 August 2022 highs art 146.11 form an additional harvest point, as will the 150.07 price mark (11 March high) if the advance continues.
This post was last modified on Sep 29, 2022, 13:29 BST 13:29