It is the tough time for US Tech stocks, as their prices are falling due to speculations around tighter regulations. While share prices of Tesla, Intel and Microsoft are also dropping, Amazon the US e-commerce giant is facing a particular decline in its stock prices.
Donald Trump is After Amazon
After the reports emerged that US President Donald Trump is after Amazon for paying little to no tax, the company’s stocks dropped up to 4.4% on Wednesday, 28 March. The next day president, lashed out at the e-commerce giant through his Twitter handle for not paying enough taxes and using the US Postal System as delivery boy.
I have stated my concerns with Amazon long before the Election. Unlike others, they pay little or no taxes to state & local governments, use our Postal System as their Delivery Boy (causing tremendous loss to the U.S.), and are putting many thousands of retailers out of business!
— Donald J. Trump (@realDonaldTrump) 29 March 2018
The e-commerce company is already making big moves to grab a fair share of retail sector in the US. Amazon Whole Foods deal worth $13.7 billion and its lunch of automated grocery stores are the few initiative to name. The company is still performing considerably well as compared to last year.
Impact on US Tech Stocks
Amazon is not the only company facing wrath of the President Trump. The hovering reports about tighter regulations is frightening the investors and hence US tech stocks are facing a slump. Other companies whose shares faced a decline were Broadcom and Tesla. Overall, the US Tech stocks. On S&P 500 index, IT stocks that included the likes of Intel, Apple and Microsoft, fell up to 6% in the March.
While, IT sector has performed poorly in the US stock exchanges in March, Facebook has succeeded in recovering from Cambridge Analytica shock, after Mark Zuckerberg apologized for Facebook users’ privacy breach. He not only admitted the mistake but also promised to make it tough for the apps to steal the data of users.
Factors Causing Decline of US Tech Stocks
Other factors that are causing the US tech stocks to drop are Trump administration’s intervention in private sector. Like, administration is blocking the chip maker, Broadcom to take over Qualcomm due to its concerns over national security.
Further, the political factors like uncertainty of trade between the US and China might be another factors. US tech giants like Apple, have a significant part of supply chain in China.
The future performance of the US IT sector in stock exchange depends upon how speculated regulations impact the investor’s confidence.