Amazon stock sinks following Trump's attacks

If President Donald Trump wants to punish Amazon for lousy Washington Post coverage, it's working.Amazon sank ...

Posted: Apr 3, 2018 8:28 AM
Updated: Apr 3, 2018 8:28 AM

If President Donald Trump wants to punish Amazon for lousy Washington Post coverage, it's working.

Amazon sank 5% Monday after Trump renewed his attacks on the company on Twitter. Its market value has fallen $37.4 billion since Trump first began targeting Amazon last week.

Trump once again accused Amazon of taking advantage of the US Postal Service, and he suggested that Amazon does not pay its fair share of tax. In fact, Amazon pays the same lower rate that the post office charges other bulk shippers, and it collects sales tax in every state that charges it.

Related: Trump vs. Amazon: Let's set the record straight

The president has said he dislikes Amazon because CEO Jeff Bezos also owns the Washington Post. He has said without proof that he believes Bezos uses the newspaper to lobby for Amazon's business interests. Amazon does not hold a stake in the Washington Post.

Trump has tweeted about Amazon four times in the last week.

Related: Trump isn't as pro-business as he claims

Amazon's drop is contributing to the broader market's fall. The Nasdaq tumbled 2.7% Monday.

Investors have started to shed tech stocks. fearing increased government regulation -- particularly in light of Facebook's recent privacy scandal.

"There's a regulatory cloud over all the tech names right now," said Jefferies analyst Brent Thill.

Apple, Amazon, Google, Microsoft, and Facebook made up nearly a quarter of the market value of the entire S&P 500 as of the end of February. They contributed to the market's climb last year. Amazon gained 56% in 2017.

Related: When Apple has a bad day, we all have a bad day

Now some investors worry that tech companies have become too powerful to grow.

"When you're a $700 billion market cap, you become a target," Thill said. Amazon has a $663 billion market value after its fall. Trump's tweets could "keep a lid on the stock short term, but long term there's no real change to our positive thesis," he said.

Anthony DiClemente, an analyst at Evercore ISI, agreed that the fundamentals behind Amazon haven't changed and there were no signs that Trump's tweets had discouraged customers from shopping on Amazon.

Bill Smead, who runs Smead Capital Management, said he believes the company's price tag is unsustainable (he doesn't own the stock).

Amazon's price to earnings ratio, a measure of how expensive the stock is compared to every $1 of earnings, sat at 223. The average ratio on the S&P was 27.5.

"It is absolutely inevitable that at some point the very, very high multiple that gets attached to them becomes a curse."

-CNNMoney's Paul R. La Monica contributed to this report.

Lafayette
Clear
26° wxIcon
Hi: 34° Lo: 9°
Feels Like: 19°
Kokomo
Clear
25° wxIcon
Hi: 32° Lo: 11°
Feels Like: 19°
Rensselaer
Clear
27° wxIcon
Hi: 31° Lo: 9°
Feels Like: 18°
Lafayette
Clear
26° wxIcon
Hi: 31° Lo: 9°
Feels Like: 19°
Danville
Clear
25° wxIcon
Hi: 33° Lo: 9°
Feels Like: 16°
Frankfort
Clear
25° wxIcon
Hi: 34° Lo: 9°
Feels Like: 16°
Frankfort
Clear
25° wxIcon
Hi: 31° Lo: 9°
Feels Like: 16°
Monticello
Clear
25° wxIcon
Hi: 33° Lo: 10°
Feels Like: 18°
Monticello
Clear
25° wxIcon
Hi: 33° Lo: 11°
Feels Like: 18°
Logansport
Clear
27° wxIcon
Hi: 32° Lo: 11°
Feels Like: 20°
One of the coldest nights of the winter (so far) is ahead tonight.
WLFI Radar
WLFI Temps
WLFI Planner

Indiana Coronavirus Cases

Data is updated nightly.

Cases: 605426

Reported Deaths: 9642
CountyCasesDeaths
Marion836221331
Lake45189680
Allen32646547
Hamilton29240315
St. Joseph27260380
Elkhart24354344
Vanderburgh19292248
Tippecanoe17905133
Johnson14974293
Porter14707168
Hendricks14295248
Madison10909220
Vigo10688179
Clark10581139
Monroe9338110
Delaware9089134
LaPorte9007162
Howard8177143
Kosciusko803182
Warrick668798
Hancock6639104
Bartholomew6443100
Floyd6377109
Wayne6106161
Grant5965115
Dubois554079
Boone549467
Morgan535595
Henry505564
Marshall502684
Cass482663
Dearborn476245
Noble471257
Jackson421947
Shelby413881
Lawrence389179
Clinton372043
Gibson369159
DeKalb345964
Harrison345644
Montgomery343354
Knox334339
Miami319844
Steuben313045
Whitley304526
Wabash301447
Adams299635
Ripley297545
Putnam294149
Huntington290659
Jasper288134
White272242
Daviess266774
Jefferson262538
Decatur246583
Fayette246348
Greene239262
Posey238128
Wells234050
LaGrange227662
Scott223439
Clay221832
Randolph212848
Jennings197736
Sullivan191133
Spencer190121
Washington183722
Fountain183127
Starke174843
Jay167022
Owen163637
Fulton163130
Orange157234
Carroll156415
Rush154418
Perry152727
Vermillion148634
Franklin147833
Tipton131832
Parke13038
Pike116226
Blackford110922
Pulaski96837
Newton90721
Brown87534
Benton86510
Crawford7929
Martin73013
Warren6777
Switzerland6575
Union6267
Ohio4867
Unassigned0375

COVID-19 Important links and resources

As the spread of COVID-19, or as it's more commonly known as the coronavirus continues, this page will serve as your one-stop for the resources you need to stay informed and to keep you and your family safe. CLICK HERE

Closings related to the prevention of the COVID-19 can be found on our Closings page.

Community Events