Should You Buy or Sell AMZN Stock as Amazon Feuds with Perplexity?

Amazon (AMZN) has sent a “cease and desist” letter to artificial intelligence (AI) startup Perplexity, accusing its AI-powered shopping assistant Comet of violating the company’s terms of service by failing to identify itself. AI shopping agents like Comet are a threat to Amazon’s lucrative and fast-growing digital advertising business. In this article, we’ll examine how to play Amazon stock amid the company’s public feud with Perplexity.

According to Amazon, it has asked Perplexity to remove Amazon from the Comet experience “in light of the significantly degraded shopping and customer service experience it provides.” Perplexity termed Amazon’s cease and desist letter as an “aggressive legal threat” and a "first legal salvo against an AI company," which it said “is a threat to all internet users.”