President Donald Trump is once again lashing out at Amazon.com, Inc. (Nasdaq: AMZN), blasting the e-commerce giant on Twitter for the rates it pays for U.S. Postal Service shipping
Amazon stock traded lower by 0.4 percent on Friday morning following Trump’s latest attack on the company.
“Why is the United States Post Office, which is losing many billions of dollars a year, while charging Amazon and others so little to deliver their packages, making Amazon richer and the Post Office dumber and poorer,” Trump tweeted. “Should be charging MUCH MORE!”
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The details of the postal service’s agreement with Amazon are not public, but Bernstein estimated that Amazon paid roughly $2 per package as of 2015.
Trump has a history of targeting Amazon. In August, he tweeted that Amazon is causing “great damage to tax paying retailers.” Following his election in November 2016, Trump accused Amazon and CEO Jeff Bezos of “a huge antitrust problem because he’s controlling so much.”
In a statement, Trump’s campaign also accused Bezos of leveraging his ownership of the Washington Post to insulate Amazon from lawsuits relating to “monopolistic tendencies that have led to the destruction of department stores and the retail industry.” Trump has since repeatedly referred to the Washington Post as “fake news.”
In the past 10 years, the postal service lost $62 billion, a trend which has only gotten worse in recent quarters. It has $15 billion of outstanding debt.
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In April, Citigroup estimated that the the postal service loses about $1.46 for every Amazon package it delivers. In the third quarter of 2017, the Postal Service reported a loss of $2.1 billion, while Amazon reported net income of $256 million.
Bezos took over the title of world’s richest man this year after another huge year for Amazon in the market. Amazon shares are on track to finish up more than 57 percent on the year.
GBH has a “highly attractive” rating and $1,350 price target for AMZN stock.
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Trump’s Loathing of Amazon.com, Inc. (AMZN) Won’t Go Away originally appeared on usnews.com
