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Amazon News Roundup: Libraries and Brexit and Trump, Oh My!
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Shares of Amazon (AMZN - Free Report) dipped nearly 2% shortly after the open on Monday, but the stock quickly bounced off that low as investors appeared unsure how to digest a handful of interesting headlines related to the e-commerce behemoth.
One of those major stories was another escalation in the company’s ongoing war of words with President Donald Trump.
In what seemed like a direct response to criticism of Trump in the Jeff Bezos-owned Washington Post, the president lashed out against Amazon in a series of tweets this morning, focusing on recent tax changes for e-retailers and Amazon’s use of the U.S. Postal Service.
The Amazon Washington Post has gone crazy against me ever since they lost the Internet Tax Case in the U.S. Supreme Court two months ago. Next up is the U.S. Post Office which they use, at a fraction of real cost, as their “delivery boy” for a BIG percentage of their packages....
The “Internet Tax Case” in the above tweet is a reference to a recent Supreme Court ruling which said that states have the right to collect taxes on e-commerce transactions, even if the seller has no physical presence in the state.
Amazon already collects state and local taxes on purchases of the products it sells directly, which account for about half of the site’s unit sales. The company could be asked to collect taxes on the other half of sales—products sold by third-party merchants—if states enact such laws.
Brexit Woes
Also in the political sphere, investors were left to decipher rumors which suggested that Amazon is nervous about current Brexit proceedings.
According to The Times, Amazon’s U.K. country manager, Douglas Gurr, met with British government officials and business leaders last week and reportedly warned that the country could see “civil unrest” within two weeks if it pulls out of the European Union without a trade deal.
The comments “stunned those present” and some disagreed with Gurr’s assessment, The Times reported.
In a statement to Business Insider, an Amazon spokesperson chose not to respond directly to Gurr’s comments but did explain the company’s overall strategy, saying, “Like any business, we consider a wide range of scenarios in planning discussions so that we're prepared to continue serving customers and small businesses who count on Amazon, even if those scenarios are very unlikely.”
Replacing Libraries?
Meanwhile, Amazon found itself at the center of a debate it did not ask to be in after a Forbes contributor argued in an op-ed that public libraries should be replaced by Amazon bookstores in order to save taxpayer money.
The gist of the piece, titled—very literally—“Amazon Should Replace Local Libraries to Save Taxpayer Money,” is that Amazon’s physical bookstore experience resembles a library combined with a Starbucks, making it a cozy place to hang out and read.
This, according to the author, illustrates why Amazon should replace libraries: it provides a similar experience without the tax fees. As one might assume, the op-ed was blasted online by those who were quick to reminder the author that libraries use tax funding to provide a plethora of free books and education services.
Want more market analysis from this author? Make sure to follow @Ryan_McQueeneyon Twitter!
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Amazon News Roundup: Libraries and Brexit and Trump, Oh My!
Shares of Amazon (AMZN - Free Report) dipped nearly 2% shortly after the open on Monday, but the stock quickly bounced off that low as investors appeared unsure how to digest a handful of interesting headlines related to the e-commerce behemoth.
One of those major stories was another escalation in the company’s ongoing war of words with President Donald Trump.
In what seemed like a direct response to criticism of Trump in the Jeff Bezos-owned Washington Post, the president lashed out against Amazon in a series of tweets this morning, focusing on recent tax changes for e-retailers and Amazon’s use of the U.S. Postal Service.
The “Internet Tax Case” in the above tweet is a reference to a recent Supreme Court ruling which said that states have the right to collect taxes on e-commerce transactions, even if the seller has no physical presence in the state.
Amazon already collects state and local taxes on purchases of the products it sells directly, which account for about half of the site’s unit sales. The company could be asked to collect taxes on the other half of sales—products sold by third-party merchants—if states enact such laws.
Brexit Woes
Also in the political sphere, investors were left to decipher rumors which suggested that Amazon is nervous about current Brexit proceedings.
According to The Times, Amazon’s U.K. country manager, Douglas Gurr, met with British government officials and business leaders last week and reportedly warned that the country could see “civil unrest” within two weeks if it pulls out of the European Union without a trade deal.
The comments “stunned those present” and some disagreed with Gurr’s assessment, The Times reported.
In a statement to Business Insider, an Amazon spokesperson chose not to respond directly to Gurr’s comments but did explain the company’s overall strategy, saying, “Like any business, we consider a wide range of scenarios in planning discussions so that we're prepared to continue serving customers and small businesses who count on Amazon, even if those scenarios are very unlikely.”
Replacing Libraries?
Meanwhile, Amazon found itself at the center of a debate it did not ask to be in after a Forbes contributor argued in an op-ed that public libraries should be replaced by Amazon bookstores in order to save taxpayer money.
The gist of the piece, titled—very literally—“Amazon Should Replace Local Libraries to Save Taxpayer Money,” is that Amazon’s physical bookstore experience resembles a library combined with a Starbucks, making it a cozy place to hang out and read.
This, according to the author, illustrates why Amazon should replace libraries: it provides a similar experience without the tax fees. As one might assume, the op-ed was blasted online by those who were quick to reminder the author that libraries use tax funding to provide a plethora of free books and education services.
Want more market analysis from this author? Make sure to follow @Ryan_McQueeney on Twitter!
Looking for Stocks with Skyrocketing Upside?
Zacks has just released a Special Report on the booming investment opportunities of legal marijuana.
Ignited by new referendums and legislation, this industry is expected to blast from an already robust $6.7 billion to $20.2 billion in 2021. Early investors stand to make a killing, but you have to be ready to act and know just where to look.
See the pot trades we're targeting>>