Is Amazon.com (AMZN) becoming a victim of the Trump effect?
Shares of the e-commerce giant and Wall Street darling have fallen about 6% since the U.S. presidential election. The stock was down 3.5% mid-day Thursday at $745.20.
Donald Trump's surprising victory against Hillary Clinton may be causing investors to flash back to Trump's comments in May to Fox News' Sean Hannity.
Trump fired shots at Jeff Bezos, claiming that Amazon's founder, president and CEO had a "huge antitrust problem" and that Amazon was "getting away with murder, tax-wise."
The now president-elect also asserted that Bezos was using The Washington Post as his own political tool. (Bezos bought The Post for $250 million in 2013).
In a potential attempt to reach a truce, Bezos tweeted Thursday morning to congratulate Trump.
Congratulations to @realDonaldTrump. I for one give him my most open mind and wish him great success in his service to the country.— Jeff Bezos (@JeffBezos) November 10, 2016
Amazon -- along with other tech behemoths -- may have to brace for Trumps' brave new world. But the e-commerce company shouldn't need to fret about antitrust issues, according to industry followers.
"I don't really see Amazon as having antitrust issues," said Tigress Financial Partners analyst Ivan Feinseth said, explaining that while Amazon does dominate the e-commerce sector, it has plenty of competition from other online retailers such as eBay (EBAY) , as well as traditional brick-and-mortar players.
And tech giants like Facebook (FB) are also moving into e-commerce, Feinseth added.
He added that there shouldn't be antitrust concerns as long as consumers are choosing to turn to Amazon, rather than being forced to.
Taxes could be a bigger concern for Amazon since not all of its customers pay sales tax on items they buy online and some states may be missing opportunities to collect sales taxes, Feinseth added.
Still, Amazon isn't the only tech giant that has seen its stock drop since Trump was elected, despite the broader market's rise. Apple (AAPL) was trading down 1.8% Thursday afternoon, while Facebook fell 1.9% and Netflix (NFLX) tumbled 5.3%.
"The focus is going to be industrials," Feinseth said. "There's definitely going to be an increase in infrastructure spending."
And Amazon's pullback is likely driven by a combination of factors.
"Let's not forget that they just had a quarter that people didn't really like," Benchmark analyst Dan Kurnos said.
Amazon reported mixed third-quarter earnings at the end of October, topping revenue but missing earnings per share estimates largely due to the company's aggressive investments across a wide range of growth areas in retail, technology and media. In particular, content and fulfillment centers have been focal points for Amazon.
While Amazon has had a nice run, investors are likely remembering the third-quarter results and choosing to allocate funds accordingly in the post-election world, he added.
Shares of Amazon are up about 8.7% year-to-date.