Amazon shares fall after Trump takes aim

Amazon shares have fallen by almost five per cent after US president Donald Trump said he wants to curb the online retailers power.

More than $30 billion was wiped of Amazon’s market value after Axios reported that Trump is determined with reigning in the firm’s growing power. According to the report Trump is ready to use antitrust law in order to ‘go after’ the company as he is worried about traditional retailers being priced out of business. The report also suggested that Trump was ready to get serious on Amazon’s alleged tax dodging, an issue the president raised publicly last year when he called for an internet tax for online retailers.

“The president has said many times before he’s always looking to create a level playing field for all businesses and this is no different,” said White House spokeswoman Sarah Sanders, when asked about the Axios report. “He’s always going to look at different ways, but there aren’t any specific policies on the table at this time.”

Amazon’s stock fell as low as $1,386.17 on Wednesday, was last down 4.6 per cent at $1,427.83. The shares have nearly quadrupled over the last three years. Tech stocks have been under pressure after Facebook acknowledged this month that user data had been improperly harvested by a consultancy. 

“With Facebook and regulatory worries, the last thing nervous tech investors wanted to see was news that Trump is targeting Bezos and Amazon over the coming months as this remains a lingering cloud over the stock and heightens the risk profile in the eyes of the Street,” GBH Insights analyst Daniel Ives told Reuters.

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