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How Trump vs. Bezos Will Affect Amazon (AMZN) Stock
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On Tuesday, Donald Trump was elected to be the 45th President of The United Sates of America. While many citizens either celebrated or protested this historic victory, Amazon (AMZN - Free Report) CEO Jeff Bezos needed to back track on some of his previous comments about the President-Elect.
Bezos is the CEO of AMZN, which is currently trading at $738.39 per share. He also owns the Washington Post, a prestigious newspaper that he purchased in 2013 for $250 million. Both men have been exchanging words for over a year now over accusations made by Trump regarding Bezos' use of his newspaper company to get out of paying taxes. According to the President-Elect, "Amazon is getting away with murder tax-wise. He's using the Washington Post for power so that the politicians in Washington don't tax Amazon like they should be taxed."
Trump's biggest problem with AMZN is that he believes Bezos is outsourcing too many jobs to overseas nations and taking jobs from Americans. As quoted in the Seattle Times, "Free trade fills the company's sails — as it builds a planetary network of warehouses, transportation and profitable data centers that are turning it into a truly global store. At the end of 2015, more than a third of Amazon's physical footprint was in countries other than the U.S., and about 32 percent of its retail sales were made overseas. Trump has also railed against the trade deals that facilitate some of that commerce, saying they're not advantageous enough to the U.S."
Throughout his campaign, Trump's biggest message was to "Make America Great Again," implying the attempt to make more jobs here domestically. Trump believes Bezos is getting away with paying little to no taxes and embarking on foreign trade agreements that aren’t benefiting anyone in the United States besides Amazon itself.
Even though there is no proof that Bezos or Amazon is indeed using the political reach of the Washington Post to avoid paying taxes, the fact Donald Trump was elected president caused Bezos to concede to the future leader. Bezos tweeted from his verified Twitter account: "Congratulations to @RealDonaldTrump I for one give him my most open mind and wish him great success in his service to the country."
This came after AMZN stock has seen an immense drop in price over the past few days. Prior to the election results on Tuesday, November 8th at 3:40pm, AMZN was trading at $789.72. In just three days, the stock has dropped over $51 to its current price of $738.39. Stockholders are showing fear that Trump being elected will cause some major negative changes to the company. This explains why Bezos tweeted that positive message for the President-Elect; he needs to help protect his company’s well being.
Currently, AMZN is a #3 (Hold) on the Zacks Rank, with a VGM score of 'C.' Check back next week to see where the Zacks Rank grades AMZN.
Interested in the other top stories of the week? Listen to Zacks Friday Finish Line to catch up on the week’s financial and investment news.
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How Trump vs. Bezos Will Affect Amazon (AMZN) Stock
On Tuesday, Donald Trump was elected to be the 45th President of The United Sates of America. While many citizens either celebrated or protested this historic victory, Amazon (AMZN - Free Report) CEO Jeff Bezos needed to back track on some of his previous comments about the President-Elect.
Bezos is the CEO of AMZN, which is currently trading at $738.39 per share. He also owns the Washington Post, a prestigious newspaper that he purchased in 2013 for $250 million. Both men have been exchanging words for over a year now over accusations made by Trump regarding Bezos' use of his newspaper company to get out of paying taxes. According to the President-Elect, "Amazon is getting away with murder tax-wise. He's using the Washington Post for power so that the politicians in Washington don't tax Amazon like they should be taxed."
Trump's biggest problem with AMZN is that he believes Bezos is outsourcing too many jobs to overseas nations and taking jobs from Americans. As quoted in the Seattle Times, "Free trade fills the company's sails — as it builds a planetary network of warehouses, transportation and profitable data centers that are turning it into a truly global store. At the end of 2015, more than a third of Amazon's physical footprint was in countries other than the U.S., and about 32 percent of its retail sales were made overseas. Trump has also railed against the trade deals that facilitate some of that commerce, saying they're not advantageous enough to the U.S."
Throughout his campaign, Trump's biggest message was to "Make America Great Again," implying the attempt to make more jobs here domestically. Trump believes Bezos is getting away with paying little to no taxes and embarking on foreign trade agreements that aren’t benefiting anyone in the United States besides Amazon itself.
Even though there is no proof that Bezos or Amazon is indeed using the political reach of the Washington Post to avoid paying taxes, the fact Donald Trump was elected president caused Bezos to concede to the future leader. Bezos tweeted from his verified Twitter account: "Congratulations to @RealDonaldTrump I for one give him my most open mind and wish him great success in his service to the country."
This came after AMZN stock has seen an immense drop in price over the past few days. Prior to the election results on Tuesday, November 8th at 3:40pm, AMZN was trading at $789.72. In just three days, the stock has dropped over $51 to its current price of $738.39. Stockholders are showing fear that Trump being elected will cause some major negative changes to the company. This explains why Bezos tweeted that positive message for the President-Elect; he needs to help protect his company’s well being.
Currently, AMZN is a #3 (Hold) on the Zacks Rank, with a VGM score of 'C.' Check back next week to see where the Zacks Rank grades AMZN.
Interested in the other top stories of the week? Listen to Zacks Friday Finish Line to catch up on the week’s financial and investment news.
Stocks that Aren't in the News…Yet
You are invited to download the full, up-to-the-minute list of 220 Zacks Rank #1 "Strong Buys" free of charge. Many of these companies are almost unheard of by the general public and just starting to get noticed by Wall Street. They have been pinpointed by the Zacks system that nearly tripled the market from 1988 through 2015, with a stellar average gain of +26% per year. See these high-potential stocks now >>