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. Vetr raised shares of Amazon.com from a "hold" rating to a "buy" rating and set a $1,655.33 price target on the stock in a report on Thursday, March 15th.
In the past Amazon has been criticised for attempting to skirt state sales taxes, but since April a year ago it has voluntarily collected state sales tax on items it sells direct to customers in all 45 states that have one.
But his attack on the company, ostensibly in defense of brick-and-mortar retailers, was misleading.
"If Amazon were to collect sales tax on behalf of 3P merchants, it would raise the price of 3P merchandise relative to Amazon's own inventory, hurting 3P merchants (small business?) and favoring Amazon".
Trump's latest assault on Amazon blamed the company for forcing other retailers out of business. "And that puts brick-and-mortar retail stores at a disadvantage", Shah said.
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During the 2016 campaign, Trump said the United States online giant could have "a huge antitrust problem" if he were elected, and suggested Bezos bought the daily newspaper as a move to protect Amazon "so that they don´t have to pay taxes and don´t get sued for monopolistic tendencies". Trump is far from the only political figure to call attention to it, and there's even a case in regards to internet sales taxes as a whole that the US Supreme Court has agreed to hear arguments for. The chart shows total state-local revenues from income and sales taxes as a percentage of gross domestic product (GDP).
Washington and Pennsylvania recently enacted laws requiring collection of third-party merchants' sales taxes, and other states are expected to follow. Amazon released a statement in 2017 that said, "The Postal Regulatory Commission has consistently found that Amazon's contracts with the USPS are profitable", Fortune reported.
Well, you could try to draw a connection between people buying more of their goods online rather than in stores and then blame Amazon for making it possible.
"And as for his last point: "[Amazon is] putting many thousands of retailers out of business!"
Several other hedge funds and other institutional investors have also bought and sold shares of AMZN.
Jeff Bezos' behemoth needs all the help it can get, given the new threat posed by the White House. "It's really about policy".
Cynthia Nixon takes campaign for NY governor to Albany
Nixon said the only way to deal with a bully is to stand up and "send a message loud and clear that you will not be bullied". Cuomo's spokesperson claimed that the governor was "poking fun at himself and one long time friend who was in the audience".