A Stock Market Crash Is Inevitable as Tech Bubble and Trade War Expose Weaknesses
Amazon.com, Inc. (NASDAQ:AMZN) stock has been getting the pneumatic hammer treatment on Wall Street. Many consider this a sign of the imminent stock market crash. The market lost some six percent of its value on April 2. Many like to blame President Donald Trump for the loss. He’s taken to tweeting against Amazon, which suggests the White House could take measures to further regulate the famous online retailer.
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. Also, our fully tax paying retailers are closing stores all over the country…not a level playing field!
— Donald J. Trump (@realDonaldTrump) April 2, 2018
Evidently, the market is counting on Amazon being able to exploit its full potential for greed to return value. Yet, the charts paint a different picture when it comes to Amazon. The most notable aspect is that despite its losses, the Amazon stock price remains at all-time highs. It reached a record $1,598/share on March 12. Trump’s tweets may or may not have pushed it down to $1,372 by Easter Monday.
Amazon Isn’t Dropping Because of Trump Alone
Yet, there’s something else missing from the analysis. Amazon isn’t just dropping because Trump—in a rare occasion of clarity—doesn’t like the company because it’s driving many small retailers out of business. Trump is absolutely right in this case, but if Amazon investors are selling, they are sensing a much bigger risk than Trump’s reproach against Jeff Bezos.
The Trump-Bezos dispute is hardly news. Even before Trump won the 2016 election, the Amazon billionaire hinted that he would send Trump to space in one of his rockets. There’s nothing new, then, about the Trump-Bezos rivalry. (Source: “Jeff Bezos Still Wants to Send Trump to Space,” Business Insider, October 20, 2016.)