Amazon stock is down more than 2% on an otherwise bullish day on Wall Street in the wake of tweets by President Donald Trump assailing the company's impact on retail, level of tax payments and straining of U.S. Postal Service resources.
I believe a "Trump tech tax" targeting companies like Amazon is likely to only hurt the USA consumer, given the prevalence of Amazon domestically - Amazon's growing presence globally will allow the company to strategically focus its efforts on lower-tax areas, giving the company a small moat to defend itself against such legislation.
Amazon fought for years against collecting sales tax but now collects taxes nationwide.
Late a year ago, Trump said the relationship between the United States Postal Service and Amazon was unfair, arguing that the agency "should be charging MUCH MORE" to deliver packages for the online business.
Read Friday's Arkansas Democrat-Gazette for full details.
Amazon gained a reputation in its early years of paying little in taxes, in part because its retail operations lost money.
Have Amazon shipments financially hurt the U.S. Postal Service?
"If there really was teeth or real concern that something would come out of the government and regulatory oversight, Amazon's stock drop would be a lot lower than it is today", said Robert Bacarella, portfolio manager at Monetta Financial Services in Wheaton, Illinois, which holds Amazon shares.
Trump kept up the attack Thursday and appears to have inaccurate information about the way Amazon runs its business.
On later Wednesday, White House press secretary Sarah Huckabee Sanders said that the White House has no plan on any policy move directed at Amazon.
"There's no doubt that e-commerce is causing brick and mortar stores to close their doors", Behlke said. USPS declined to comment on Trump's tweet.
Amazon has carved out an influential position in Washington through lobbying, campaign contributions and pushing policy issues like job creation, but it could still face problems if Trump takes action against it. "The president has expressed his concerns with Amazon". But other megastores like Walmart share much of the blame for that.
Trump has targeted Amazon for other reasons in the past: its founder and CEO Jeff Bezos personally owns The Washington Post, and Trump has called the newspaper "fake news" and a "guardian of Amazon" after it published unfavorable stories about him or his administration.