Trump Lashes Out At Amazon.com Via Twitter

Amazon.com (AMZN ), Inc. seeks to be the world's most customer-centric company, where customers can find and discover anything they may want to buy online. The company lists unique items in categories such as books, music, DVDs, videos, consumer electronics, toys, camera and photo items, software, computer and video games, tools and hardware, lawn and patio items, kitchen products, and wireless products.

The dysfunctional circus that is US politics in the Trump era has gotten even more chaotic and unstable over the past few days as citizens are confronted with a President who seems to have a hard time staying on message--especially when that message is critical of the KKK, neo nazis, racists, and other unsavory characters from the far fringes of the US right-wing.

But Charlottesville isn't the only game in town when it comes to Trump dysfunction these days. This morning, the business media was awash with discussions of Trump's latest Twitter tirade in which he openly berated and attacked retail giant Amazon.com.

Trump published a tweet which read "Amazon is doing great damage to tax paying retailers. Towns, cities, and states throughout the U.S. are being hurt - many jobs being lost!" Shares in the company immediately took a nose dive, losing @1% of their value.

And why is Trump suddenly so interested in the effects of Amazon's growth on brick and mortar retailing? We've been discussing that carnage for months. But Trump has focused on dying industries like coal mining that have far fewer workers rather than the fates of those toiling for Sears, or JCPenney, or any of the other fading retail giants.

Analysts note that the Washington Post--also owned by Amazon founder Jeff Bezos--was highly critical of Trump on its editorial page this morning. They do not see a move to protect retailers in general here. Rather, they postulate that Trump lashed out because he was angry at that coverage-- as well as big business CEOs in general as they become increasingly more critical in the wake of PR disasters like Trump's handling of the aftermath of Charlottesville.

Thus, we now see the highly unusual situation of a Republican in the White House taking on a large swath of that party's traditional constituency, business leaders, and owners. Truly, these are strange times in Washington DC!

We suspect, however, that Amazon.com will be just fine. Their stock has been one of the rocks of the tech/retail sector and Bezos has managed to propel the company to greater and greater performance despite a lack of profits and constant expectations of an impending crash.

However, our models run on fundamentals rather than the news cycle, or a good "story," or the promise of hue profits once the delivery drone fleet is created. For that reason, we remain pessimistic on the ticker despite the great performance over the past few years.

ValuEngine continues its HOLD recommendation on Amazon.com for 2017-08-15. Based on the information we have gathered and our resulting research, we feel that Amazon.com has the probability to ROUGHLY MATCH average market performance for the next year. The company exhibits ATTRACTIVE Company Size but UNATTRACTIVE Book Market Ratio.

 

ValuEngine Forecast

 

Target
Price*

Expected
Return

1-Month

980.11 -0.27%

3-Month

1,000.38 1.80%

6-Month

1,042.18 6.05%

1-Year

951.22 -3.21%

2-Year

1,152.96 17.32%

3-Year

1,185.99 20.68%

Valuation & Rankings

Valuation

80.53% overvalued

Valuation Rank(?)

3

1-M Forecast Return

-0.27%

1-M Forecast Return Rank

30

12-M Return

27.88%

Momentum Rank(?)

78

Sharpe Ratio

1.13

Sharpe Ratio Rank(?)

93

5-Y Avg Annual Return

28.86%

5-Y Avg Annual Rtn Rank

94

Volatility

25.59%

Volatility Rank(?)

59

Expected EPS Growth

24.52%

EPS Growth Rank(?)

62

Market Cap (billions)

455.02

Size Rank

100

Trailing P/E Ratio

259.07

Trailing P/E Rank(?)

31

Forward P/E Ratio

208.06

Forward P/E Ratio Rank

2

PEG Ratio

10.57

PEG Ratio Rank

4

Price/Sales

3.03

Price/Sales Rank(?)

35

Market/Book

24.00

Market/Book Rank(?)

7

Beta

1.46

Beta Rank

21

Alpha

0.08

Alpha Rank

70

Disclosure: None.

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