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Amazon stock sinks following Trump's attacks

If President Donald Trump wants to punish Amazon for lousy Washington Post coverage, it's working.Amazon sank ...

Posted: Apr 3, 2018 7:28 AM
Updated: Apr 3, 2018 7:28 AM

If President Donald Trump wants to punish Amazon for lousy Washington Post coverage, it's working.

Amazon sank 5% Monday after Trump renewed his attacks on the company on Twitter. Its market value has fallen $37.4 billion since Trump first began targeting Amazon last week.

Trump once again accused Amazon of taking advantage of the US Postal Service, and he suggested that Amazon does not pay its fair share of tax. In fact, Amazon pays the same lower rate that the post office charges other bulk shippers, and it collects sales tax in every state that charges it.

Related: Trump vs. Amazon: Let's set the record straight

The president has said he dislikes Amazon because CEO Jeff Bezos also owns the Washington Post. He has said without proof that he believes Bezos uses the newspaper to lobby for Amazon's business interests. Amazon does not hold a stake in the Washington Post.

Trump has tweeted about Amazon four times in the last week.

Related: Trump isn't as pro-business as he claims

Amazon's drop is contributing to the broader market's fall. The Nasdaq tumbled 2.7% Monday.

Investors have started to shed tech stocks. fearing increased government regulation -- particularly in light of Facebook's recent privacy scandal.

"There's a regulatory cloud over all the tech names right now," said Jefferies analyst Brent Thill.

Apple, Amazon, Google, Microsoft, and Facebook made up nearly a quarter of the market value of the entire S&P 500 as of the end of February. They contributed to the market's climb last year. Amazon gained 56% in 2017.

Related: When Apple has a bad day, we all have a bad day

Now some investors worry that tech companies have become too powerful to grow.

"When you're a $700 billion market cap, you become a target," Thill said. Amazon has a $663 billion market value after its fall. Trump's tweets could "keep a lid on the stock short term, but long term there's no real change to our positive thesis," he said.

Anthony DiClemente, an analyst at Evercore ISI, agreed that the fundamentals behind Amazon haven't changed and there were no signs that Trump's tweets had discouraged customers from shopping on Amazon.

Bill Smead, who runs Smead Capital Management, said he believes the company's price tag is unsustainable (he doesn't own the stock).

Amazon's price to earnings ratio, a measure of how expensive the stock is compared to every $1 of earnings, sat at 223. The average ratio on the S&P was 27.5.

"It is absolutely inevitable that at some point the very, very high multiple that gets attached to them becomes a curse."

-CNNMoney's Paul R. La Monica contributed to this report.

Mississippi Coronavirus Cases

Data is updated nightly.

Confirmed Cases: 113876

Reported Deaths: 3238
CountyConfirmedDeaths
Hinds7850176
DeSoto685779
Harrison505083
Jackson445084
Rankin388186
Madison377993
Lee350779
Forrest299578
Jones287784
Washington255199
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Monroe147372
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Marshall139227
Lincoln138557
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Copiah136236
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Scott124729
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Simpson120449
Union116525
Tate114939
Leake114340
Holmes114160
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Wayne99821
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George97718
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Marion93542
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Newton85227
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Winston82821
Tishomingo80041
Hancock79827
Attala78926
Clarke73450
Clay68321
Jasper67717
Walthall63627
Calhoun61912
Noxubee59617
Smith58916
Montgomery53523
Claiborne53316
Tunica52817
Yalobusha51914
Lawrence50714
Perry48623
Carroll47612
Greene46918
Stone46214
Humphreys42616
Amite42113
Quitman4196
Jefferson Davis40011
Webster37013
Wilkinson33520
Benton3255
Kemper32015
Sharkey28014
Jefferson27410
Franklin2373
Choctaw2046
Issaquena1074
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Alabama Coronavirus Cases

Confirmed Cases: 155915

Reported Deaths: 2674
CountyConfirmedDeaths
Jefferson22861374
Mobile14468314
Tuscaloosa10148139
Montgomery9875196
Madison915094
Shelby720462
Lee649665
Baldwin647569
Marshall433049
Calhoun418960
Etowah418749
Morgan403635
Houston369232
DeKalb330229
Elmore314852
St. Clair287142
Limestone276530
Walker272293
Talladega261035
Cullman235724
Lauderdale214841
Jackson210015
Autauga202330
Franklin202131
Colbert196731
Russell19233
Blount189325
Dallas186227
Chilton184132
Escambia171929
Coffee171710
Covington169929
Dale165451
Chambers133643
Pike132313
Tallapoosa130587
Clarke130017
Marion106229
Butler100140
Barbour9979
Marengo99222
Winston91313
Geneva8527
Pickens82417
Lawrence82131
Randolph81216
Bibb81114
Hale74930
Clay72912
Cherokee72614
Lowndes70328
Monroe64010
Henry6396
Bullock63717
Washington63412
Crenshaw60230
Perry5836
Wilcox56212
Fayette56113
Conecuh55713
Cleburne5438
Macon52920
Sumter47021
Lamar4665
Choctaw38812
Greene34216
Coosa2023
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