Tech

Amazon's slump may reflect fear of score-settling from President Trump

Analyst: I don't see any disruption in Amazon
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Analyst: I don't see any disruption in Amazon

Amazon.com is being shut out of the post-election stock market rally.

Shares of the e-commerce giant fell 3 percent on Thursday and have dropped about 5 percent since Donald Trump was elected president early Wednesday. Meanwhile, the S&P 500 has climbed 1.5 percent over the past two trading days.

Whether Amazon is dropping because Trump won the election isn't totally clear, but the idea that investors would take a more skeptical approach isn't totally crazy. Trump and Amazon CEO Jeff Bezos had multiple public spats during the campaign.

Trump criticized Amazon for not paying its fair share of taxes, and claimed the company was somehow sheltered due to Bezos's ownership of The Washington Post, a newspaper that Trump routinely called dishonest. Here are some tweets from Dec. 7.

@realdonaldtrump:If @amazon ever had to pay fair taxes, its stock would crash and it would crumble like a paper bag. The @washingtonpost scam is saving it!

@realdonaldtrump: The @washingtonpost, which loses a fortune, is owned by @JeffBezos for purposes of keeping taxes down at his no profit company, @amazon.

With the exception of offering Trump a spot on his rocket ship to space, Bezos didn't engage in a Twitter war with Trump. But he wasn't shy about taking shots when given the opportunity.

Last month, at a Vanity Fair conference in San Francisco, Bezos said Trump's efforts to "try and chill the media and threaten retribution, retaliation" are inappropriate.

Bezos also said Trump's suggestion that he may not concede the election if he loses or that he might lock up Hillary Clinton if he wins "erodes our democracy around the edges."

Trump team considers Dimon for Treasury -Sources
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Trump team considers Dimon for Treasury -Sources

Trump hasn't made any specific policy proposals that threaten Amazon's ability to dominate the e-commerce market or that would change the company's tax status. But people in the investment world are at least talking about it.

"At best it's business as usual for Amazon," said Colin Gillis, an analyst at BGC Partners. "At worst the company could face increased federal scrutiny,"

John Blackledge, an analyst at Cowen & Co., isn't concerned. He already had a buy rating on the stock and told CNBC on Thursday the dip represents a buying opportunity.

"Fundamentals of the company are very strong," said Blackledge. "I don't see any disruption in their business."

Bezos sent a congratulatory tweet to Trump on Thursday, only the second time he's mentioned the now president-elect on Twitter.

@JeffBezos: Congratulations to @realDonaldTrump. I for one give him my most open mind and wish him great success in his service to the country.

Handicapping the degree of an incoming president's score-settling is a new task for investors. Of course, it's not limited to the business world. Trump's most high-profile feuds have been with the media and politicians on both sides of the aisle.

Ari Fleischer, a former White House press secretary for President George W. Bush, said Trump shouldn't be threatening anyone, whether Hillary Clinton for alleged crimes or Bezos with antitrust issues. Fleischer said he didn't vote in this election.

"Presidents should not be involved in that matter," said Ari Fleischer. "But I would be concerned."

CNBC's John Melloy and Josh Lipton contributed to this report.

Correction: This story was updated to correct the spelling of Ari Fleischer's last name in one reference.