(Photo by Drew Angerer/Getty Images
Last May, then-candidate Trump said the following to Sean Hannity, ”He (Jeff Bezos, CEO of Amazon and owner of the Washington Post) thinks I’ll go after him for antitrust,” Trump said at the time. “Because he’s got a huge antitrust problem because he’s controlling so much, Amazon is controlling so much of what they are doing.
“He’s using the Washington Post, which is peanuts, he’s using that for political purposes to save Amazon in terms of taxes and in terms of antitrust.”
Amazon shares are getting hit hard despite the fact that all three senior indices re trading well in the green at the moment despite the fact that Donald Trump is now President-elect Trump.
Yes, techland shares are all getting hit hard but Amazon is probably one of the worst performers among the mega capitalization technology names, down about 3% compared to around 1% for the other mega-cap names in technology.
Later on the followings statement was made by President-elect Trump’s team which stated that Amazon is using the Post as a political tool to prevent “get(ting) sued for monopolistic tendencies that have led to the destruction of department stores and the retail industry.”
Seriously? Monopolistic tendencies?
Actually, the truth is that Jeff Bezos has found a way to deliver goods cheaper to consumers around the world. Factor in the cost of going to the mall and spending hours, the cost of gas used in the trip back and forth, the time at check-out, etc., and consumers are far better served shopping for their purchases at home with a few clicks here and there.
That is a choice that Amazon and Bezos has provided to customers and they have jumped on that choice feet first and without a question. Most millennials do almost all of their shopping online and that trend will not change.
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Punishing Amazon because Bezos found a way to bypass the gouging of the retail customers by department stores and the retail industry is foolish at best and asinine at worst. Amazon is providing that service not just here at home but pretty much across the world as well. Consumers across the globe are asking/begging for the convenience of shopping from their homes and Amazon is happily providing it.
So while the panicked selling in Amazon continues, the smart money is buying.
Words to the wise.
(Long amzn, long options in amzn)
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