After Donald Trump Accuses Amazon for causing job losses, Amazon’s market share price takes a dip by falling as much as 1.2% of its value wiping 5.7 billion dollars off the evaluation for Amazon.
Inspired from the Political Influence
Amazon’s founder Jeff Bezos who has been against Trump and is now bearing a loss because of one tweet by President Trump. Bezos owns Washington Post, a newspaper that has been actively criticizing Trump from a long time. Many a times, President Trump has called Washington Post as Fake News. Now the political fight has turned into an economic fight as Trump’s one tweet has damaged Amazon to an extent that it has to bear a huge loss in its market cap.
Amazon is doing great damage to tax paying retailers. Towns, cities and states throughout the U.S. are being hurt – many jobs being lost!
— Donald J. Trump (@realDonaldTrump) August 16, 2017
The Possible Impact on Online Retailers Because of this Fight
The present situation isn’t in favor of Amazon. The mood of Trump too favors doomy days for Amazon. Can we expect a fall? Well it doesn’t seems to be that easy because Amazon has long potential plans for its future and it is still going good. Yet there are chances that many online retail companies in India can take advantage of even small fluctuations in Amazon’s market. Amazon is behind Flipkart in its market share in India. As of March, Flipkart occupied 57% of the market share. If anything bad happens to Amazon, Flipkart will topple it in no time.
Another angle that awaits is the entry of Alibaba in Indian market. Alibaba is playing the game of wait as it is waiting for the right time to enter Indian market. Alibaba although has invested in PayTM and is indirectly making its approach in the Indian market. One can expect that it may soon enter the Indian market if things go as per plan. Alibaba, which is competing with Amazon on various stages will leave no stone unturned in replacing Amazon. Alibaba is keen to compete in global market and has recently promised to deliver one million jobs in the United States.
Trump’s tweet that Amazon is causing job loss and Alibaba’s promise of 1M jobs can be connected with each other. Will Trump give preference to Alibaba in order to check Jeff, will be an interesting move to observe.