Milan Tax Raid Sends Amazon Shares Below $200

Amazon US0231351067

Amazon’s stock moved decisively lower on Thursday, dipping through the $200 threshold as authorities conducted a large-scale raid in Milan. Italian investigators are weighing a charge of tax evasion running into hundreds of millions.

On February 12, 2026, the Guardia di Finanza searched Amazon’s Milan headquarters and the private residences of seven executives. Prosecutors are examining whether the U.S. group maintained an undeclared business presence in Italy between 2019 and 2024 to minimize tax liabilities.

Agents seized computers, IT gear, and hard drives as part of the operation. The offices of audit firm KPMG were also searched. The potential tax shortfall is described as being in the hundreds of millions. The action forms part of an ongoing European inquiry into the company’s tax practices across the region.

Share price pressured in a sensitive period

The negative headlines arrived at a moment when Amazon shares were already under pressure. On February 12, the stock closed at $199.57, down 2.21%. The sell-off follows the company’s quarterly results released in early February, which coincided with a planned investment program totaling about $200 billion for 2026, a factor contributing to investor unease about free cash flow.

Investors were further unsettled by the scale of spending on artificial intelligence infrastructure. In response, Daiwa Securities trimmed its price target from $300 to $280, citing execution risk. By contrast, Arete Research nudged its target higher, to $285.

Ring halts a controversial collaboration

In parallel, Ring—the Amazon subsidiary—announced a strategic realignment of its operations. The planned partnership with the surveillance-technology provider Flock Safety was terminated on February 12. Reports from CNBC indicate the move followed public criticism of a Super Bowl advertisement that raised privacy concerns. The anticipated integration of license-plate readers has been dropped from consideration.

Analysts maintain a cautiously optimistic view

Despite the regulatory headlines, the consensus among market participants remains moderately positive, with average price targets clustering between $282 and $288. The coming weeks will reveal whether the company’s long-term investment strategy can win over investors or whether Europe’s regulatory risks will add to the headwinds.

@ boerse-global.de | US0231351067 MILAN