Amazon.com, Inc. (NASDAQ:AMZN) is in the news again, but this time it isn’t about its relentless march across the retail sector.
Trump has set his sights and his ire over the recent events in Charlottesville at Jeff Bezos, who is not only the founder and CEO of Amazon, but also the owner of The Washington Post.
“Amazon is doing great damage to tax-paying retailers. Towns, cities and states throughout the U.S. are being hurt – many jobs being lost!”
Investors become reticent when the president singles out a company, as the executive branch has numerous ways to make life troublesome for big businesses.
While this may be a genuine shot across the bow from Trump, it will be a long time before anything comes of it.
Jeff Bezos Isn’t Sweating the Heat
First, Congress and much of Washington are on summer break and when they get back, there are a number of big issues — the annual budget, raising the debt ceiling, tax reform and healthcare, for example — that will likely take priority. It’s unlikely to be the force that holds back any of AMZN’s momentum.
The other interesting recent development is that Target Corporation (NYSE:TGT) reported higher comparable store sales in Q2 and raised its guidance for the rest of the year. That’s an encouraging sign. It appears that not all brick-and-mortar retailers are going the way of the dodo.
As a matter of fact, Amazon just announced that it is opening new “Instant Pickup” brick-and-mortar spots where you can order something and pick it up immediately.
Amazon is starting with five college campuses, according to Reuters. It will offer several hundred smaller items like snacks and drinks and phone chargers from its mobile app and the items will be available within 2 minutes. AMZN continues to push into the brick-and-mortar space with this following on the heels of its acquisition of Whole Foods Market, Inc. (NASDAQ:WFM) and its new frictionless stores.
These developments will also add cover to AMZN stock against traditional retailers that are pushing Washington to squeeze more taxes out of online retailers.
Given these developments and Amazon’s continued growth in its key Amazon Web Services (AWS) division, it’s very likely that breaking through the $1000 price barrier again will be measured in weeks rather than months. Not even Donald Trump can rain on this parade.
— Louis Navellier
[ad#IPM-article]
Source: Investor Place