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In Case You Forgot, Trump Still Hates Amazon

02 April 2018

One of Axios' sources who has spoken to the president said: "He's wondered aloud if there may be any way to go after Amazon with antitrust or competition law".

"I have stated my concerns with Amazon long before the election", he wrote on Twitter. He also notes how they "use our Postal System as their delivery boy (causing tremendous loss to the U.S.) and are putting thousands or retailers out of business!" Trump tweeted early on Thursday.

At time of publication, Amazon shares were trading in the green at $1,432.

Amazon shares fell 4.38 percent on Wednesday after the news.

Amazon has not responded to Trump's tweet.

The retailer and cloud computing pioneer is the latest company Trump has singled out for praise or condemnation, although the effect on stock prices of his targets is generally short-lived. "Towns, cities and states throughout the US are being hurt - many jobs being lost!"

Trump has previously taken aim at Amazon. A ruling in South Dakota's favour could begin to redress the advantages retailers like Amazon have over bricks-and-mortar businesses.

According to an analysis from the ITEP, the gap between the tax rate that some local tax jurisdictions impose and what Amazon collects can be as much as 7.5 percentage points in Homer, AK., for example.

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Trump's tweet comes a day after news site Axios reported that he "hates" Amazon and has talked about changing Amazons tax treatment because he was "worried" about mom-and-pop retailers being put out of business. If the third-party seller is based in another state, Amazon does not collect state taxes - except in two states: Washington and Pennsylvania(CNBC).

The White House defended Trump's statement, saying action is being planned. "While Amazon takes advantage of tax breaks and loopholes, it pays federal corporate tax and charges sales taxes in 46 USA jurisdictions". "And that's about half of their sales", he said. He called the tech giant a "no-tax monopoly" a year ago, adding that it was doing great damage to other retailers. Generally, no taxes are collected on those, an issue that might be straightened out in the Supreme Court this year.

Investors largely waved off concerns about that on Thursday.

"Amazon would just pass the majority of the taxes on to its customers, so it's just a wealth transfer from millions of consumers, to a small number of shop owners (including Walmart)". On Wednesday, Sanders said the Trump administration now had "no announcements and no specific policies or actions that we are now pushing forward or considering taking". It's important to note that there are lots of other things going on in the world besides Trump's tweets that could affect the stock, but the president certainly has an impact. The Postal Service loses tons of money every year, even without Amazon.

Details of Amazon's payments to USPS are not publicly known.

An independent agency of the US federal government, USPS reported a net loss of $2.7 billion for fiscal 2017, largely due to increased costs of retirement benefits.

While Amazon remains a very hard company to value on a free cash flow basis, due in large part to the fact that the company still has razor thin margins and remains a hard company to forecast earnings for, the company has continued to reinvest in its extremely high ROE business, one which has swallowed up global market share at an unbelievable pace.

In Case You Forgot, Trump Still Hates Amazon