On Wednesday morning, Trump took to Twitter to rant against one of the largest online retailers, Amazon.
Amazon has been blamed by some investors for the rapid decline in traditional retail, but investors seemed to shrug off President’s Trumps most recent claims along the same lines.
Shares up slightly, about 0.5%, on Wednesday morning following the president’s tweet.
The tweet is not the first from the president attacking Amazon. He has tweeted about the company 21 times dating back to 2011, according to the Trump Twitter Archive. Until April of 2015, the tweets were mostly promoting one of his books. December 7, 2015, was the first time the president tweeted negatively about the company, calling Amazon a “no profit company” and accusing the Washington Post of being a tax haven for Amazon.
The tweets don’t seem to materially affect Amazon, as the company is up about 46% since Trump’s first negative tweet. After Wednesday’s tweet at 7:12 am, the stock rose $US5.12, or about 0.5%.
The term “Amazoned” has been coined recently to describe the effect on stock prices Amazon has when it enters a new market. Blue Apron is the most notable example, as the company lowered its expected range for its initial public offering after Amazon announced its intent to buy Whole Foods, and has been sinking ever lower since its IPO.
Amazon’s market cap continues to rise as it takes on these new businesses, and some think it could be the first company to hit a valuation of more than $US1 trillion. Anindya Ghose, a professor at NYU’s Stern School of Business, thinks it will cost a lot of retail jobs for Amazon to reach that valuation. Amazon fires back saying it has no plans to reduce the number of retail jobs at the company, and that it is overall adding a net positive number of jobs to the economy.
Amazon is doing great damage to tax paying retailers. Towns, cities and states throughout the U.S. are being hurt – many jobs being lost!
— Donald J. Trump (@realDonaldTrump) August 16, 2017