Amazon Shares Fell Due to President Trump’s Criticism
Amazon Shares Fell Due to President Trump’s Criticism: American business groups including US chambers of commerce defended Amazon.com against US President Donald Trump tweet which included unverified criticism on the world´s biggest online retailer, Amazon.
Jeff Bezos, CEO of amazon and who also privately owns The Washington Post had taken a $10 billion hit in the current week. Bezos, ranked by Forbes magazine as the world´s richest man with an estimated net worth of $115.6 billion, owns 78.89 million Amazon shares, worth about $110 billion.
US President Trump Criticism
- Trump told media sources at the White House that Amazon was not paying the US Postal Service a fair rate. It was costing US taxpayers billions of dollars and forcing other retailers out of business. He further added that he will raise the rates.
- The post office is losing billions of dollars because it delivers packages for Amazon at a very low rate.
- Trump told reporter “If you look at the cost that we are subsidizing, we are giving a subsidy to Amazon.”
White house sources announced that No specific actions addressing Trump´s concerns about Amazon were on the table but that could change given Trump´s dissatisfaction with the company.
Amazon shares were at $1,392.0 but fell as low as $1,355.33 after US President Donald Trump´s latest Amazon-related tweet. Trump offered no details about the report he mentioned or how he might charge the company more through USPS.
Automakers Boeing Co and Carrier Corp, which is owned by United Technologies Corp and came under Trump blames where as in 2015 Barack Obama, President of US at that time, criticized office supply company Staples. Inc for not embracing the Affordable Care Act, drew a quick reproach from Republicans and the US Chamber of Commerce.
Amazon Shipping Process
Amazon ships packages through providers such as FedEx Corp and United Parcel Service Inc as well as its own shipping service. Representatives of Amazon and USPS did not post any comment on US President critical tweet on their business.
