Trump’s attack on Amazon.com leads to $24 billion loss in market capitalization

As per news reporting service Axios, Trump is considering ways to rein in Amazon’s power.

In the second instance of its kind, U.S. President Donald Trump came down heavily on Amazon.com Inc accusing it of benefiting unfairly from cheap rates from the U.S. Postal Service and not paying enough taxes.

Trump’s attack on Amazon.com on Twitter comes in the wake of a news report from Axios stating that Trump was considering ways to rein in the company’s power either through competition or antitrust laws.

Potential regulatory action on Amazon by the Trump Administration send the Amazon’s share down by 3.3% knocking down $24 billion from its market value.

“While we are on the subject, it is reported that the U.S. Post Office will lose $1.50 on average for each package it delivers for Amazon. That amounts to Billions of Dollars,” tweeted Trump on Saturday.

An analysis by Citigroup last year shows, if the U.S. Postal Service (USPS) were to reallocate its costs to account for the growing volume of packages it delivers, it would cost $1.46 more to deliver each package.

Significantly, federal regulators, which review contracts made by USPS, have not raised any issues with the terms of its contract with Amazon.

“If the P.O. ‘increased its parcel rates, Amazon’s shipping costs would rise by $2.6 Billion’,” tweeted Trump; it wasn’t clear which report Trump was referring to in his tweet. “This Post Office scam must stop. Amazon must pay real costs (and taxes) now!”

Incidentally, Trump has also accused the Washington Post, which is privately owned by Amazon’s founder and CEO Jeff Bezos, of being a “lobbyist” for Amazon.

The Washington Post had won a Pulitzer Prize in 2017 for its investigation into Trump’s donations to charities.

While Amazon.com declined to comment, the Washington Post did not immediately reply to a request for comment.

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Categories: Creativity, Entrepreneurship, HR & Organization, Regulations & Legal, Strategy

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