Is President Trump going after Amazon?
Amazon (AMZN) stock fell 4.4% on Wednesday, March 28, 2018, due to speculation that President Trump wants to impede the e-commerce giant’s growth.
Axios reported last Wednesday that Trump wants to change the tech giant’s tax treatment and is looking for ways to punish the company based on antitrust grounds.
The report dragged down the stock, which has defied gravity over the years. Amazon stock plunged 10.5% since hitting its peak on March 12. The fall also came due to broader market concerns over the impact of Facebook’s (FB) misuse of personal data. That said, the stock has still risen 22.4% YTD (year-to-date).
Will Amazon’s rally continue?
Amazon is now the largest American company as of Monday, April 3, 2018, briefly beating Alphabet to the second spot in March. Alphabet (GOOG) is second with a market cap of $717 billion. Microsoft leapfrogged Amazon to the third spot.
Many analysts still remain bullish on the e-commerce giant since the company is in a position to capitalize on many key tech (technology) trends, including cloud computing, smart speakers, and video streaming.
However, any move by President Trump to suppress the company’s growth could affect its stock.