US President Donald Trump cast’d dark clouds on Amazon.com Inc. (NASDAQ:AMZN) with an early morning Tweet Thursday.
People have asked me what can President Trump against the online retail giant?
The Big A: Lots!
- He could push for probes of consumer protection, privacy and antitrust issues.
- He could also step up his support for allowing states to collect sales tax on 3rd-party purchases from Amazon.
- He could seek to have the US Postal Service charge more to deliver packages, and
- He could thwart Amazon’s aspirations to win a multibillion dollar Pentagon contract for cloud services.
Even with his power, President Trump’s ability to act has limits.
Inquiries by the Justice Department (DOJ) or the Federal Trade Commission (FTC) could take years and bear a high burden of proof on the government’s side and huge legal fees to Amazon, plus the Dark Clouds that most often doom risk on investment in company shares thus chopping billions from the company’s market cap, and slashing billions from Jeff Bezos’ wealth.
The action pits the world’s most powerful man, Donald J. Trump against 1 of the world’s biggest corporations, a global titan with $684-B in market capitalization and more than half a million employees.
At stake is Jeff Bezos’ reputation, the company’s revenue and, potentially, ability to continue to disrupt markets as it reshapes retailing.
Amazon did not immediately respond to a request for comment.
White House spokeswoman Lindsay Walters told reporters aboard Air Force One Thursday that there are no specific plans to move against the company. “The President has expressed his concerns with Amazon,” she said.
Meanwhile, President Trump has the leverage, and Jeff Bezos has the stress, anxiety, worry and concerns, as the immediate support line on the stock is at 1209, then at 1168, and then at 971. The recent closing high marked at 1588.
|NASDAQ:AMZN||1447.34||29 March 2018||15.92||1406||1455.47||1365.2||12,581,100|
|HeffX-LTN Analysis for AMZN:||Overall||Short||Intermediate||Long|
|Neutral (0.12)||Neutral (0.03)||Neutral (-0.05)||Bullish (0.38)|
Have a terrific Easter weekend