Amazon Stock Stands to Gain From Trump’s Policies
Amazon.com, Inc. (NASDAQ:AMZN) stock went up by more than three percent in the last trading session to close at $743.24 as the low levels turned attractive for buyers.
AMZN stock had been under pressure since Donald Trump won the U.S. presidential election. The reason for this may be the Trump-Bezos war of words that has been going on for the past many months.
Donald Trump accused Amazon CEO Jeff Bezos of using The Washington Post to malign him during the presidential campaign. Moreover, Trump is convinced that Bezos uses the newspaper to save on taxes. According to Trump, Amazon is getting away with murder tax-wise, and Jeff Bezos is using The Washington Post for power so that the politicians don’t tax Amazon like they should.
In December, Bezos had quipped that he would like to send Trump into space.
Now that Donald Trump has won the presidential race, the question is whether or not investors should be worried about Amazon stock.
Amazon.com, Inc. has been growing on the back of the strength of its different businesses like “Prime,” “Kindle,” and “Cloud.” “Amazon Echo,” the voice-controlled speaker powered by Amazon’s “Alexa,” is doing great. The company is investing heavily in its video content as well as its fulfillment centers. With its plans to open brick-and-mortar convenience stores, the company is posing a big threat to established players like Wal-Mart Stores, Inc. (NYSE:WMT), which are busy developing their own e-commerce strategies.
The e-commerce player posted impressive results in the first two quarters of the year, which pushed AMZN stock to all-time highs. However, the expectations were crushed in the third quarter when the high costs ate heavily into the company’s profits. The shipping costs simply went through the roof, and this hit Amazon stock hard.
It’s true that the company is investing heavily into warehouses and video content, but Amazon has always been a company focused on gaining market share rather than profitability. The company stands to gain immensely once consumer spending starts to go up as Trump’s promised lower tax policies become a reality. This would mean more sales for Amazon and more upside for the AMZN stock.
Amazon Stock Likely to Gain Ahead
Customers love Amazon.com, Inc. and its products, given the number of choices that the company provides to them. The company focuses on its customers and makes their lives more convenient. This has been the main reason why Amazon has been able to grow the way it has over the past many years. Donald Trump cannot change any part of this equation. AMZN stock may be down as of now, but it can never be out.