Looks Like a Showdown Between Trump And Amazon
Trump is lining up to attack Amazon’s unfair taxation status. In response, stock market valuation for the retailer plummeted with the news. According to reports, the President will be cutting off the “free ride” that the company gets from the US Postal Service and at least one source claims that Trump is “obsessed” with Amazon.
Amazon was founded by left winger Jeff Bezos in 1994 who started selling books, and the company does not pay taxes to the federal government. It is this unfair advantage that seems to be putting too much pressure on brick-and-mortar stores as well as smaller online retailers.
Even the New York Times has attacked Amazon, printing an article in 2015 that alleges that Amazon’s office workers are in an “intimidating and confrontational” working culture.
Jeff Bezos, 54, has degrees in electrical engineering and computer science and worked on Wall Street before starting Amazon. He was briefly the wealthiest person in the world in 2017 and has a net worth of over $118 billion. In 2013, he purchased the newspaper The Washington Post.
Trump Administration and Amazon
In the past, Trump has tweeted negatively about Amazon and especially the left wing Bezos, especially going after their low tax status and how they are also damaging the postal service by not paying the right costs for their cheap shipping.
Here are some tweets from last year:
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
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
Press Secretary Sarah Sanders
After the news outlet Axios leaked a source that alleged that Trump is “obsessed” with fighting Amazon, the White House Press Secretary responded to reporters asking questions as the market opened up and saw a sell-off of Amazon stock. This afternoon, Sarah Huckabee Sanders said:
“We have no announcements and no specific policies or actions that we’re currently pushing forward or considering taking.”
Despite this, the stock dropped over $60 in one day.
Amazon Stock Drops
At market close, the value of Amazon stock had dropped $66 from $1,497 per share to $1,431. In total, Amazon lost over $31 billion in market value at the opening of the markets.
Other Tech Stocks Failing
In the last five trading days, FANG (Facebook, Amazon, Netflix, Google) stocks have dropped $168.6 billion in combined market value.
- Facebook stock value dropped $42.12 billion
- Amazon stock value dropped $66.3 billion
- Netflix stock value dropped $11.49 billion
- Google stock value dropped $48.67 billion
In the last few weeks, Facebook has been under fire for privacy violations. Politically they suffered when left wingers pretended to be outraged that Cambridge Analytica had been able to get valuable voter information from the site before the Trump election. In response, Facebook banned Cambridge from advertising on their website, or from managing pages for clients. Since Cambridge has numerous political clients, this was a big deal for many people who were relying on Cambridge to get their campaign messages out. The big problem sprouted when last week it was revealed that the Facebook app had been taking text message and phone call information from Android cell phones.
In January we announced that conservatives started to consider out loud whether they should be boycotting Amazon after Jeff Bezos announced that he would spend $33 million on scholarships allowing DACA “dreamers” to go to college.
Just today, Netflix announced that former Obama official Susan Rice has been appointed to their Board of Directors.
Over the last year, the big news from Google has been the threat of a lawsuit from James Damore, a white male employee who was fired after his internal memo on diversity was released to the public.
Jeff Bezos, ‘Ruthless’ Capitalist?
Several years ago we introduced a profile of Amazon’s founder after he was interviewed by Charlie Rose on 60 Minutes. If this was an interview with a conservative like the CEOs of Chick-fil-A or Hobby Lobby, then Bezos would have been portrayed as more ‘ruthless.’ But, since Bezos was talking about his “big ideas” and keeping costs low in order to ensure company loyalty, the fact that it was loved by its investors was shown as a positive.
At one point Charlie Rose explicitly asks whether Amazon is “ruthless in their pursuit of market share.” Bezos says it’s simply “complaining” to call him “ruthless,” and that “complaining is not a strategy” for success.
Sources: Axios, Business Insider, CNBC