The President of America has been after the tech giants like Apple, Facebook, etc. for a long time for one reason or another. This time his target is the online retailing giant Amazon Inc. that has been doing quite well in the market for a long time, however, after the recent tweet of the U.S. President, the shares of the e-commerce company saw a massive decline.
Shares of Amazon drop after this tweet of Trump
On Wednesday, the United States President got on the micro-blogging site to reveal his thoughts on the working of the online retailing giant. Mr. Trump said that the online retailing giant is hurting retailers and causing job losses in the country.
The U.S. President wrote on the micro-blogging giant, “Amazon is doing great damage to tax paying retailers. Towns, cities and states throughout the U.S. are being hurt – many jobs being lost!” The shares of the U.S.-based e-commerce giant declined as much as 1% in premarket trading after the tweet of the President.
On Wednesday, the stock of the company closed down at 0.5%, underperforming a 0.9% gain in the SPDR S&P Retail ETF. In an note to clients on Wednesday, the KeyBanc Capital Markets analyst Edward Yruma, “While this is not his first tweet about Amazon and taxes (and of course, the Washington Post), we do find it interesting that he is now linking Amazon and job losses in traditional retail.” From July 22 to July 24, Trump bashed the “Amazon Washington Post” around three times on Twitter. In addition to this, Trump blasted the micro-blogging giant in June for not paying internet taxes.
He had tweeted, “The #AmazonWashingtonPost, sometimes referred to as the guardian of Amazon not paying internet taxes (which they should) is FAKE NEWS!”
This is not the first time Trump has blasted the online retailing giant
In February 2016, the U.S. President said during a campaign rally that if he becomes President, some companies will face many problems. He was quoted as saying, “They’re going to have such problems.” He further claimed that the Jeff Bezos – the Chief Executive of the e-commerce company – bought The Washington Post to have “political influence.”
Amazon had refused to comment then and it is declining to comment now. Further, in July, Steven Mnuchin, the Treasury Secretary, hinted in July that the administration may soon take “a position” on the tax collection policy of the U.S.-based e-commerce company.
On July 26 at a Senate hearing, Sen. Joe Manchin, D-W.Va asked the Treasury secretary what was his view on internet state sales taxes. Mnuchin said, “So this is an issue that we’ve been looking at very carefully within the administration, and we expect to come out with a position shortly. I am encouraged that Amazon is now charging tax, I believe, on their own sales but not the marketplace. I’m not sure I understand the consistency on that, but I respect the states’ ability that there’s an awful lot of money that’s not being collected.”