Trump Lashes Out At Bezos: "Amazon Is Doing Great Damage To Retailers; Hurting Cities And Jobs"

Tyler Durden's picture

Amazon stock dropped a much as 1.2% in the pre-market (down 0.7% last), after an early start of the Trump tweets on Wednesday where with his first tweet he attacked the giant online retailer, saying "Amazon is doing great damage to tax paying retailers. Towns, cities and states throughout the U.S. are being hurt - many jobs being lost!"

Trump's comment hardly conveys new information, and underscores what Dick's CEO Ed Stack said yesterday during his striking conference call in which he said the retail industry is in "panic mode", liquidating inventory to keep market share, and hit by a "perfect storm" in which Amazon is a key culprit:  "Dick's is another example of Amazon becoming the new middleman... Here we go down the gross margin rabbit hole just in time for the holidays."

The question, of course, is whether the tweet is indicative of another policy shift by the Trump administration, one in which the president will focus on the giant online retailer as a potential monopoly and bring up anti-trust considerations, potentially sparking fears of a government mandated break up. Of course, Trump's tweet may have simply been prompted by something he read in the Bezos-owned WaPo this morning, resulting in the angry tweet.

Indicatively, last week Defense Secretary James Mattis visited Amazon's HQ in Seattle, where CEO Jeff Bezos posted a photo of him showing Mattis around the headquarters.

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south40_dreams's picture

Stop letting online retailers sell across state lines. Just like banks were required to do after the Great Depression

HenryKissingerBilderberg's picture

is not AMAZON a welfare moocher?

they ran on sudsidies for the last what.... TWENTY years?

Croesus's picture

How to succeed in Business in the new economy in 3 easy steps:

1. Be "Deep State" connected.
2. Start a company that produces nothing of real value.
3. Go on corporate welfare.

VD's picture

correct. and...

 

4. lose lots of money (80 quarters in a row for AMZN) while your stock soars into the stratosphere.

 

q: why is AWS profitable at all? (it has zero comp advantage btw)

a: because the CIA is one of its biggest clients.

 

you just cant make this shit up.

4freedom78's picture

Fuck bezos the fed should rise the rate to 3% tomorrow and crash all these fucking poser

Hal n back's picture

its a great strategy, sell below cost forever, grab market share, and keep hoping the public buys the stock bidding it up.

The problem is not as much Amazon, as it is the shareholders and creditors who have kept it alive

It does not take a genius to build a company based on low price, in fact i kind pf remember biz school talking about moat strategies like best product and service rather than price.

When Amazon switched from UPS to independent drivers that was a tell its running out of ideas to save money. They make 12-19 bucks anhour , no benefits, have car costs, and a grueling job.

Nobody said a word when Amazon was using US Postal service for low cost delivery, or any other on line company (eg lands end) which is being subsidized by taxpayer to the tune of 5 billion a year.And that was not enuf savings for amazon.

Then how about all the HIB employees doing all the programming to delve into the personal lives of customers.

 

Amazons competitive advantage is selling below cost, surviving and thriving when lookking at stock price at ~250 PE 20 years after going public. and not having to charge for sales taxes.

if it was privately owned it would have  been gone a long time ago and a case study in biz school.  

Watch Bezos call for Minimum Basic Income, paid by others,  now that he has destroyed companies and jobs

 

eclectic syncretist's picture

Put the fucking thumbscrews on that job-destroying bastard Bezos, until he starts creating some REAL jobs.

drendebe10's picture

Fuk sales tax. Fuk all taxes. Fukdagawdamshitazzgubmint

PT's picture

If on-line is under-cutting bricks-and-mortar then I guess that means the price of commercial real estate is going to go down?

Oh, sorry.  There I go using logic again.  My mistake.

Hal n back's picture

its the level playing field thats missing.

the taz issue os part of the bigger problem.

Are any of us in a business like governemnts where we can raise prices whenever we want?

Free markets eventuall work even with interventions present, eg, people  and business moving out of IL.

But we have become  a welfare state. And the takers think they deserve all they get.

Now, who has made them think that.

We have a bunch of thin skinned people in our country. I trust its not racist to call people "thin skinned".

PT's picture

First the manufacturing goes overseas.
Then the retailers go on-line.
Then one day distribution stops.
What are you going to do about it?  Make your own?  With what?
What did you expect?  All your neighbours are unemployed.  Why should they have nice things?
Speaking of which, how do you manage to survive?

Ponyexpress's picture

"Real value" is what the consumer of the Amazon system puts in his pocket that would otherwise go to costs associated with infrastructure, salaries, utilities and on and on. Oh and taxes to the various  governmental entities.

Would you rather  drive X miles to a retailer or get  the product delivered to your door for less money? That is  value.

PT's picture

... and thus the Capitalist sells the rope to his enemy, all the while claiming "there is no better way!"

Linus2011's picture

retailers - shape up or ship out. 

PT's picture

... and you are safe because, ... because ... ???  You are not a retailer?

A precious few will manage to hold onto their ignorance forever.  You may be one of them.  Or not.

Chuck Walla's picture

Jeffy is about to reap the whirlwind. Obama would have done no less(and probably more) to any right-wing retail giant who criticized him.

Uncertain T's picture

Gibson guitar comes to mind.

VD's picture

idiot, that's not why AMZN is destroying retail; it's because AMZN is a corp welfare queen and engaged in illegal practices -- remember, this is a company that for its first 20 years (pre-AWS) had lost money for every single quarter or 80 quarters of losses, in a row all while their stock price soared.

 

AMZN undercuts everyone on price and will lose money on items just to get the "volume".

 

USPS, a taxpayer funded insolvent operation, is now extending discounted rates to AMZN such that no one can compete in terms of inexpensive shipping -- why doesn't Trump start there? Along with the tax breaks and hiring practices, etc etc etc

stocktivity's picture

No...maybe, just maybe, their prices are lower.

VD's picture

they are lower because they can afford to lose money, for 80 quarters in a row plus.

Why? because they are in essence a criminal enterprise that does not require profitability in their biz model to undercut everyone.

 

learn.

East Indian's picture

Returning a portion of the money back to people?

20-20 Hindsight's picture

Not the mention that AMZ treats their staff and small business suppliers like shit.

drendebe10's picture

Chump is a loud mouthed do nothing along with all the corrupt do nothing elected democrap and republicant turds. Fukemall.

HarryKallahan's picture

.

To this day, you can NOT buy health insurance across state lines.

How did that work out ?

.

 

Phat Stax's picture

Really?  Gov't regulation is the answer?  

ZH responses are really surprising.   This is B-school 101 stuff.  Tthis is what captialism looks like.

EmeraldWI's picture

The part that looks like capitalism is where the Ayn Rand disciples snuff out organized labor for their AMZN paymasters.

deepfriedbrain's picture

Idiot. This is what corporate welfare looks like.

bigdumbnugly's picture

does anyone use any adjective other than 'angry' to describe a Trump tweet?

try 'truthful.'

 

chilller's picture

Amazon is hydrofluoric acid on a compound fracture.

ZippyBananaPants's picture

I like Amazon, use them every week. Other retail losers need to step up or go away.

Last of the Middle Class's picture

Same here. If retailers don't step up and start focusing their marketing like a laser on the consumer they are dead men walking. I can go to Wal Mart and spend an hour looking at their Chinese crap selection or pop online and view a thousand times the selection with better prices while avoiding the medicaid mamas blocking the check out lanes at Wallyworld. I'll never go back as long as I have an online option. The only survival option for most retailers is an online app that takes you to their "hidden at the back of the store" product as quickly and efficiently as an online search of Amazon does. They absolutely have to convert to technology, the "just let them walk in and wander around till they find the shit" option is just not going to work anymore. If they don't have the ability and the margins to upgrade their technology offerings and I mean fucking fast then they are just goners.

VD's picture

step up by losing money on their items like AMZN does? step up for the thinnest of margins? step up because they pay similar taxes like AMZN and get similar USPS deals? step up by having such scale bc they expanded while losing money every quarter?

 

AMZN is a giant Ponzi corp welfare scam and that is the only way the could have ever gotten this large in the unBIZ model.

when the saxon began's picture

for my needs - ebay is better nearly every single time

assistedliving's picture

hmmm tRumpette going against AMZN users/voters for Retail users/voters

last i checked he's winning by a small margin 15/18

 

zerohedgejjxxzz12's picture

Sears, 45 years ago had a great catolouge shopping system, I have not seen a sears catolouge in years. maybe that is where they made their biggest mistake. They were poised to be what Amozon has become. perhaps they had no forsight, and now they are alomost gone.

Last of the Middle Class's picture

Wal Mart and other box retailers have done this for 30 years and now suddenly Amazon is the culprit? No, Amazon owns the WaPo that is giving Donald hell and is nothing more than a propaganda rag. Box stores have been raping employees and transferring costs to the government any way they can for decades while the courts stood by and did nothing to protect the population from these over grown monopolies. Ultimately, nearly all of the money in the US flows through the hands of a few that own these markets and that is your problem. Complete and total government owned and operated destruction of economic diversity within all communities for the sake of another IPO.

Able Ape's picture

People naturally gravitate towards convenience; how many people do you know own iceboxes and how many year-round ice houses do you know of?  Brick and mortar stores are yesterday's icehouses - sorry, but that's just the way it is and new and creative ways will just have to be found to deal with this situation.  Perhaps people will finally see that we need to stop spending trillions of dollars on things that go "boom" and kill people and start re-engineering society in productive ways... 

VD's picture

wrong. big box on average over last 30 years did not lose money every single quarter, in a row. sorry, it's just not accurate. the rest of your points are closer to the truth.

BennyBoy's picture

 

"Amazon Is Doing Great Damage To Amazon Employees; Rise Of The Robots Must Be Stopped"

 

Robert Trip's picture

Only the physically disabled and severely mentally challenged, those unable to make it to a brick and mortar location, should be permitted to order online.

Get off your lazy ass and go outside, mingle with real people and purchase what you need.

Then we may get access to better product rather than this cheap Chinese shit.

Philo Beddoe's picture

Only the physically disabled and severely mentally challenged....

Hey, buddy that is the 99 percent.

ImReady's picture

I challenge you to go to Best Buy and find some decent memory or a cpu to upgrade your computer. You won't find it because of the bare bones inventory. 

Retailers have shit service, poor quality, nonexistent  selection and/or inventory. That is really why retail is failing. 

Amazon is not always cheaper on price but they nearly always have what I need and I don't have to drive 40 miles to find what I need and spend a whole day of my time and return home with nothing but aggravation. 

Fuck retail... 

lester1's picture

Fuck Bezos and these globalist cucks.

The IRS/commerce department should do Sherman  Anti-trust Act review of Amazon !

Bricker's picture

As far as I am concerned any company like Amazon Walmart Home Depot or Lowes are all pond scum and free market killers. They dictate environments and pricing and put people out of business.

hoist the bs flag's picture

love. love. love Amazon! just ordered some cheap chinese shit off them this morning.

nothing like shopping in Walmart too! everyday low prices! plus, the service is stellar!  whoo hoo! Murica! 

Can't say nothing but quality things about Home Depot and Lowes. Great American companies right there!

Bricker's picture

If price is your only requirement, you dont understand the spectrum of retail.