Amazon stocks slip 6 percent as Trump attack anew

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Online retail giant Amazon.com Inc.’s (AMZN.O) shares drop 6 percent on Monday after US President Donald Trump attacked the company anew over its delivery price rates through the US Postal Service (UPS) and pledged unspecified charges.

Amazon lost almost $45 billion from its market value for a decline of 5.9 percent at $1,362.48. This is after Trump tweeted, “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!”

The president has been transparent on his opposition to Amazon’s use of UPS’ services, saying if the post office will increase its parcel rates, Amazon’s shipping costs would rise by $2.6 billion.

Amazon did not send a prompt response on the issue despite of increasing investor concerns over possible additional regulations in the company.

In November, UPS reported a cut in its annual revenue, affected by a decline in first-class and marketing mail, slightly offset by a rise in package deliveries.

UPS has also posted losses primarily due to its legal mandate to prefund the department’s future retirees’ healthcare amounting to $5 million annually.

Despite of Trump’s opposition, some analysts render a positive view on Amazon’s use of UPS’ services. “We believe the US Postal Service has gained share from Amazon which is helping the UPS stay afloat,” Morgan Stanley analysts said.

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