Amazon Stock Drops After Trump Tweet

With e-commerce booming, warehouses are now worth more than office buildings

U.S. President Donald Trump was voicing concern about Amazon.com Inc when he commented about the company on Twitter on Thursday, but the administration has no action dealing with the company at this time, the White House said.

Amazon has not responded to Trump's tweet. In fact, Amazon collects sales tax in roughly 45 states and the District of Columbia, just like the physical retailers it competes against.

But after touring Amazon's newest fulfilment centre this morning in Monee, Ill., US Rep. Robin Kelly, (D) IL, said she believes Trump's tweets are personal.

In yesterday's early-morning trading, Amazon saw its shares tumble 7 percent, or more than $50 billion after reports alleged that the president sought to target the Seattle-based retailer using tax or antitrust laws.

Amazon owns a fleet of planes for delivery and uses the U.S. Postal Service as the last step to get its products locally to its millions of customers. "It's been explained to him in multiple meetings that his perception is inaccurate and that the post office actually makes a ton of money from Amazon". He called the tech giant a "no-tax monopoly" a year ago, adding that it was doing great damage to other retailers.

Does Amazon avoid state and local taxes?

Details of Amazon's payments to USPS, which delivers its packages to millions of USA consumers and businesses, are not publicly known. As a result of Trumps tweet, the shares of Amazon dropped in the market by nine per cent. Some estimates suggest half of Amazon's total sales go through third parties.

"Walmart was crushing the little guys before Amazon, and more of Amazon's growth is coming from the Walmarts of the world", Kerner said.

Lou Kerner, a technology investor who blogs about the sector, said Trump's attack on Amazon "is a very populist thing to do", but that any new measures imposed on Amazon may do little for consumers or small businesses. "And that puts brick-and-mortar retail stores at a disadvantage".

On later Wednesday, White House press secretary Sarah Huckabee Sanders said that the White House has no plan on any policy move directed at Amazon.

Amazon founder Bezos also privately owns the Washington Post, which won a Pulitzer Prize a year ago for its investigation of Trump's donations to charities.

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