Amazon.com Inc. (NASDAQ: AMZN) shares slipped by 4 percent on Monday after U.S. President Donald Trump attacked the eCommerce giant once again over its business with the United States Postal Service.
“Only fools, or worse, are saying that our money losing Post Office makes money with Amazon. THEY LOSE A FORTUNE, and this will be changed.” tweeted Trump.
Amazon shares fell last week after sources said that Trump will attack Amazon by altering its tax treatment by hitting the company with either antitrust or competition laws.The sources said that Trump’s decision stems from the company hurting Trump’s businesses and that it is “killing shopping malls and brick-and-mortar retailers.”
Trump has already openly expressed his position regarding Amazon after a tweet about a year ago.
"Amazon is doing great damage to tax paying retailers. Towns, cities and states throughout the U.S. are being hurt - many jobs being lost!," he tweeted.
The details of Amazon’s payments to USPS is not publicly known, but Wall Street analysts have estimates that it pays the service roughly half of what it pays to United Parcel Service Inc. (NYSE: UPS) or FedEx Corp (NYSE: FDX).
Many analysts say otherwise regarding Trump’s tweet saying that Amazon’s service with USPS has bolstered it.
“An argument, however, could be made that the USPS was losing billions before it expanded its service offerings for Amazon and would, still, likely lose billions if Amazon discontinued its use of the USPS tomorrow,” DA Davidson analyst Tom Forte wrote in a note to clients.
Morgan Stanley analyst Ravi Shanker wrote in a note that the firm believes USPS has gained shares from Amazon, which keeping USPS going.
Trump did not officially decide or implement any new tax treatments for Amazon.