Amazon.com Inc (NASDAQ:AMZN) shares are trading lower Monday following a downgrade from Wells Fargo. The stock also appears to be facing selling pressure after a federal judge said the Federal Trade Commission (FTC) can proceed with its lawsuit against the company.

What To Know: Wells Fargo analyst Ken Gawrelski downgraded Amazon from Overweight to Equal-Weight on Monday and lowered the price target from $225 to $183, citing slowing growth and stiffer competition, per CNBC.

The Wells Fargo analyst believes Amazon remains a margin expansion story. Although the market is already bracing for weaker operating income into the end of the year, Gawrelski cautioned that margin expansion could be capped through the first half of 2025.

A federal judge's ruling related to the FTC's antitrust lawsuit also appears to be adding to the selling pressure on Amazon shares Monday.

According to an AP News report, the order that was issued by Judge John H. Chun last week was unsealed on Monday, showing the judge will allow the FTC to proceed with its lawsuit against Amazon. A trial is expected to be held in October 2026.

"We are pleased with the court's decision and look forward to moving this case forward," FTC spokesperson Doug Farrar reportedly said in a statement.

"The ways Amazon illegally maintains its monopolies and the harm they cause—including suppressed competition and higher prices for shoppers and sellers—will be on full display at trial."

The FTC has alleged that Amazon is abusing its marketplace positioning to inflate prices, overcharge sellers and stifle competition on its platform. Several state attorney generals are also accusing the e-commerce giant of violating antitrust laws. The report indicates that Judge Chun allowed some state claims to proceed, but also dismissed some claims made by New Jersey, Pennsylvania, Oklahoma and Maryland this week.

AMZN Price Action: Amazon shares were down 3.06% at $180.80 at the time of publication, according to Benzinga Pro.