Trump Lobs Another Threat at Amazon, Driving Down Ecommerce Giant's Stock Again

Markets Insider

Shares in the online retail giant have plunged 11 percent since last week, when Axios reported that the president was "obsessed" with regulating the company. JPMorgan Chase & Co. restated a "buy" rating and set a $1,385.00 target price (up previously from $1,375.00) on shares of Amazon.com in a report on Wednesday, January 10th. Analysts say Trump could also try to prevent the Department of Defense from signing a lucrative contract with Amazon's Amazon Web Services platform as a way to go after the online retailer.

Following President Trump's victory, the former businessman allegedly spent more than $2,000 in 2017 on Amazon products.

The U.S. Postal Service (USPS) in November reported a decline in annual revenue, hurt by a drop in first-class and marketing mail, offset partly by an increase in package delivery.

Bank of America Merrill Lynch told its clients that funds had significantly larger stakes in Amazon (AMZN) and Netflix (NFLX) compared to benchmark market indexes at the end of last month.

Trump's tweets could "keep a lid on the stock short term, but long term there's no real change to our positive thesis", he said.

The Trump tweets continued over the weekend, with another on Monday. "Our regulator, the Postal Regulatory Commission (PRC), looks carefully at this question every year and has determined that they do".

Only, the more packages the Postal Service delivers for Amazon, the more money it loses.

In case of Revenue Estimates, 40 analysts have provided their consensus Average Revenue Estimates for Amazon.com, Inc.as 49.88 Billion.

USPS Chief Financial Officer, Joseph Corbett, writing in PostalReporter.com previous year, noted that the postal service is required by law to charge retailers at least enough to cover its delivery costs.

Amazon regularly uses the USPS to complete what's called the "last mile" of delivery, with letter carriers dropping off packages at some 150 million residences and businesses daily. The post office charges some of the world's lowest stamp prices.

"An argument, however, could be made that the USPS was losing billions before it expanded its service offerings for Amazon and would, still, likely lose billions if Amazon discontinued its use of the USPS tomorrow", Forte said.

Details of Amazon's payments to the USPS are not publicly known, but some Wall Street analysts have estimated it pays the postal service roughly half what it would to United Parcel Service Inc or FedEx Corp to deliver a package. "This investment resulted in more efficient processes as well as thousands of jobs and related economic benefits in local communities".

The president's tweet also assumes that Amazon would be forced to pay if the Postal Service increased its rates for packages. But Amazon has been setting up its own shipping operations in the USA and elsewhere in the world to minimize costs.

Although he expects good news when company's start to report earnings in two weeks, the market has been stifled as companies are unable to buy back their stock in the weeks leading up to when they report earnings.

Related News:



Most liked

How Conte Reacted To Embarrassing Tottenham Loss
Son was again denied by Caballero but Alli pounced on the pinball inside the Chelsea area before slotting into the bottom corner. It's more about the expectation being so high."Very pleased for Dele because it's been a tough period for him.

Egyptian Citizens Spoil Ballots To Vote For Mohamed Salah In Presidential Election
The NEA said the number of invalid ballots was 1,762,231 votes, amounting to 7.27 percent of the total votes. State media had portrayed failure to vote as a betrayal of Egypt .

StormTracker 13 Sunday morning forecast
A few light showers are possible today as well, however, precipitation chances have been steadily decreasing throughout the week. Morning clouds will give way to drier and cooler weather for Friday Afternoon, with highs closer to 60.

IPL 2018: Sunrisers Hyderabad sign Alex Hales as replacement for David Warner
Hales has been in poor for Islamabad United in the Pakistan Super League recently where he could only manage a top score of 46. The 31-year-old Warner was the leading run-getter for SRH in the 2017 IPL as he guided them to the title in 2016.

Stephon Clark's Independent Autopsy Report Reveals Multiple Gunshots to the Back
Clark lived for three to 10 minutes after the shooting, adding to questions about the amount of time it took to get him treatment. Police said the officers feared he had a gun, but that he was later found to have been holding a cellphone.

Mass of the Lord's Supper with the washing of the feet
This is because Jesus "commanded" the disciples to think of him when they broke bread and wine together after he was killed. Thousands of devotees will gather in the open-for-all procession which will begin from Padri-ki-haveli around 4pm.

Tesla issues recall for 123000 Model S vehicles due to rusty bolts
Nomura reiterated their buy rating on shares of Tesla (NASDAQ: TSLA ) in a research report report published on Thursday morning. According to a Tesla blog post about the accident, "We have never seen this level of damage to a Model X in any other crash".

NY 2018: Volkswagen Atlas Tanoak Pick-up Concept Unveiled
The pickup concept bears a noticeable resemblance to its three-row Atlas sibling and boasts the model's logo on its rear tailgate. The rear doors are very, very short, and barely noticeable as doors at a glance, with their handles buried within the C-pillar.

Oklahoma City schools release teacher walkout plan after pay raise measure passes
She heard from students about how their schools are preparing for the teacher strike. Stay in touch with us anytime, anywhere .

Real Madrid told to look elsewhere as Chelsea duo clearly indicate futures
Manchester City defender Nicolas Otamendi then scored a header from a corner in the 38th minute to get Argentina back into the match.

Actor Corey Feldman Says He Was Stabbed in Car, LAPD Investigating
Please say prayers for us! Feldman said alongside photos of himself laying in a hospital bed and being checked on. Feldman added that he believed the attack could have been related to threats he'd been receiving on social media.

Gov. Ducey to Uber: Arizona suspending license to drive autonomous cars
Experience forms one pillar of self-driving auto safety, Shashua said, and transparency forms another. Prior to the crash , Arizona had boasted about its lax regulations of self-driving vehicles.

Iran Warns of Dire Regional Consequences if Nuclear Deal is Canceled
Hosseini alleged that the United States will use the MEK to attempt to overthrow the theocratic regime in Teheran. Meanwhile, a former Israeli defense minister on March 25 said Bolton once tried to persuade him to strike Iran.

Paul Ryan denies rumor that he'll step down as House Speaker
Amodei added that "nobody has talked to" members of Congress about "how they are going to vote" on new leadership. "I don't know. Shortly after this report surfaced, Scalise's office told Politico that Scalise " fully supports " Ryan to remain speaker.

Germany made to work hard, rallies to hold Spain
The five-time world champions showed no signs of missing the injured Neymar at Moscow's Luzhniki stadium, where the July 15 World Cup final will be played.