Amazon shares slump as Trump’s views on tech behemoth spook investors
Amazon shares tumbled in the US Wednesday trading session, after a report suggesting President Trump wants to ‘go after’ Amazon emerged.
According the Axios story, sources state that the President thinks Amazon got too good a deal from the US postal service and that Jeff Bezos' company is hitting his friends’ businesses, too.
Amazon shares closed 4.38% lower at $1,431.42, keeping the stock below the $1,500 mark for a second straight day.
How can Trump hurt Amazon?
The report highlighted that even though his aides have told him that Amazon is good for the US postal service and has helped boost their revenues, the President doesn’t appear to see it that way.
In addition, although his initial views over Amazon’s dominance may stem from his business friends and colleagues, he spins it in a way suggesting he’s looking out for all the US small business owners.
The sources who form the basis of the story say: “He’s obsessed with Amazon. Obsessed.”
“He’s wondered aloud if there may be any way to go after Amazon with antitrust or competition law,” another said.
It’s also likely that part of Trump’s dislike for Amazon stems from Bezo’s ownership of the Washington Post, the sources added.
Despite the news, analysts said investors shouldn’t worry too much, as any future potential regulatory changes shouldn’t affect the tech behemoth’s financials.
“While its now a hand holding time for Amazon given this new regulatory potential threat, we believe the reality of these worries altering the company's business model and future tax structure are low and we would be buyers of the name on weakness,” wrote GBH Insights analyst Daniel Ives in a note to clients.
Amazon sponsors The Great British Bake Off
Separately, Amazon is reported to have signed a major sponsorship deal for the second series of Channel 4’s “The Great British Bake Off’ programme.
The series, which was purchased by Channel four after a long spell on the BBC, proved more popular than expected and attracted the largest 16-34 TV audience in 2017.
