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Amazon Shares Dip Post President Donald Trump’s Tweet
Shares of the global ecommerce firm Amazon dipped on Wednesday after the President of the United States Donald Trump tweeted regarding the ecommerce company.
Amazon is doing great damage to tax paying retailers. Towns, cities and states throughout the U.S. are being hurt – many jobs being lost!
— Donald J. Trump (@realDonaldTrump) August 16, 2017
This early morning tweet by the President cost the company close to $ 6 billion in market value and a 0.5% dip in the stock or about $ 5 per share. The shares of Amazon.com Inc., slipped 0.3% in the premarket trade and dipped by a further 0.9% a few minutes after the tweet.
The tweet was in response to The Washington Post’s editorial with the headline, “Mr. Trump gives comfort to racists,” which criticized President Trump’s comments following the tragedy in Charlottesville, Virginia. The Washington Post is owned by the Amazon Chairman Jeff Bezos and is known for aggressively reporting on Trump’s presidential campaign. President Donald Trump has previously called The Washington Post a tax haven for Amazon and called Amazon a “no profit company.”
The #AmazonWashingtonPost, sometimes referred to as the guardian of Amazon not paying internet taxes (which they should) is FAKE NEWS!
— Donald J. Trump (@realDonaldTrump) June 28, 2017
The @washingtonpost, which loses a fortune, is owned by @JeffBezos for purposes of keeping taxes down at his no profit company, @amazon.
— Donald J. Trump (@realDonaldTrump) December 7, 2015
But many analysts report Amazon is somewhat responsible for the woes of physical retailers losing business to online shopping as Amazon’s market cap continues to rise. Amazon has always defended its position saying they have no plans to reduce the number of retail jobs at the company are adding a net positive number of jobs to the economy. At present Amazon employs about 180,000 in the U.S. and has plans to hire 100,000 more full and part time jobs by mid 2018. The company also collects sales tax on purchases in the 45 states where it is required and supports national legislation that would require remote sellers to collect sales tax regardless of location. Market analysts also expect the ecommerce firm to be the first to achieve a valuation of $ 1 trillion.
The fall, according to market analysts, will not affect Amazon much as the company is still worth in excess of $ 460 billion. The Washington Post has also received a surge in traffic under President Trump’s rule, gaining more than 1 billion page views in May 2017 alone.
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