Tags: piper jaffray | trump | chatter | amazon | stock

Piper Jaffray Analyst: Ignore Trump 'Chatter,' Buy Amazon Stock Now

Piper Jaffray Analyst: Ignore Trump 'Chatter,' Buy Amazon Stock Now
(Jonathan Weiss/Dreamstime)

By    |   Tuesday, 03 April 2018 11:04 AM

Piper Jaffray analyst Michael Olson advises savvy investors that they should just disregard President Donald Trump's constant Twitter attacks on Amazon and buy shares of the online retail titan.

"Nothing can be certain, except death and taxes … and more Trump tweets on Amazon," CNBC cited analyst Michael Olson as writing.

"We believe sales tax collection changes would have limited impact on consumer use of Amazon and could actually help Amazon's relative competitive positioning in domestic e-commerce," Olson predicted.

Based on a survey of 2,000 U.S. consumers, the firm found that just 5 percent of Americans see sales tax as a critical factor when deciding where to shop, CNBC.com reported.

The survey found that fast and free shipping and a wide product selection were more important to shoppers.

Olson remains bullish on shares, noting the president's second major criticism — that the United States Postal Services loses "a fortune" from delivering Amazon packages — is unlikely to produce discriminatory rates for the company.

"We find it unlikely that the Post Office will materially raise rates for Amazon deliveries," Olson added. "Amazon would likely shift to alternative shipping options (perhaps both internal and external)."

Olson advised investors to buy shares of Amazon and confirmed his 12-month price forecast of $1,650, implying more than 20 percent upside for the stock.

Amazon shares recently traded at $1,374.86 despite continued Twitter attacks by the president.

Trump on Tuesday repeated his attack on the company over the cost of its deliveries sent through the United States Postal Service.

"I am right about Amazon costing the United States Post Office massive amounts of money for being their Delivery Boy. Amazon should pay these costs (plus) and not have them bourne (sic) by the American Taxpayer. Many billions of dollars. P.O. leaders don’t have a clue (or do they?)!" Trump wrote on Twitter.

Amazon's stock price turned negative shortly after the president's tweet.

Trump continued his Twitter attacks against Amazon over the weekend having tweeted that “the U.S. Post Office will lose $1.50 on average for each package it delivers for Amazon. That amounts to Billions of Dollars.”

Monday he tweeted: “Only fools, or worse, are saying that our money losing Post Office makes money with Amazon. THEY LOSE A FORTUNE, and this will be changed.”

(Newsmax wire services and Reuters and Bloomberg contributed to this report).

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Piper Jaffray analyst Michael Olson says investors shouldn't be bothered by President Donald Trump's criticism of Amazon; he recommends buying shares.
piper jaffray, trump, chatter, amazon, stock
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2018-04-03
Tuesday, 03 April 2018 11:04 AM
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