Amazon loses $60B in market cap in less than 1 week
"How Do I Tax Thee?" author Kristin Tate and FBN's Connell McShane and Dagen McDowell on the state of the tech sector.
Shares of Amazon remain on turbulent ground Tuesday amid renewed criticism from President Donald Trump, after the stock suffered its largest one-day point loss ever during Monday’s trading session.
Trump revived attacks against the tech behemoth for what he views as an unfair deal with the U.S. Postal Service, accusing Amazon of wasting taxpayer dollars.
The stock, which opened Tuesday’s trading session higher, slid into the red following Trump’s tweet, before regaining some of those losses. At the close on Tuesday, shares were up slightly more than 1%.
Following an Axios report that Trump was looking to change Amazon’s tax treatment and target it for anti-competitive practices, the president has made repeated references that he is seeking action against the company – though he has not made any specific policy suggestions.
His threats have, however, seemed to trouble Amazon investors. The stock is down more than 7% over the past five days and nearly 9% over the past month. Amazon suffered its largest, single day point loss ever on Monday, amid a flurry of tweets from the president. So far this week, shares are more than 5% into the red.
Meanwhile, the company has lost more than $60 billion in market cap since last Wednesday.
Some have questioned the merit of the president’s criticisms, however. While USPS has suffered serious financial hardship throughout recent years, its packages segment has actually been a bright spot for the company. Experts have also noted that if USPS were to raise prices on Amazon, the tech giant could work out a deal with another carrier, since the sheer volume of packages it ships offers it massive negotiating leverage.