Bipartisan Political Threat to Amazon May Be on the Horizon | The Street

As mentioned late yesterday, despite the enormous success of “Prime Day,” the continued expansion of product offerings and an all-time record stock price, Amazon.com Inc.  (AMZN) is likely to face its greatest existential threat from regulatory agencies and legislators in Washington, D.C., over the next year:

“I am shorting Amazon today because I have learned that there are currently early discussions and due diligence being considered in the legislative chambers in Washington, D.C., with regard to possible antitrust opposition to Amazon’s business practices, pricing strategy and expansion announcements already made (as well as being aimed at expansion strategies being considered in the future).

If I am correct, word of this could lower Amazon’s shares by 10% overnight. And if expansion or pricing prohibitions are attacked for antitrust reasons (or for other reasons), a far more severe market impact is possible.”

— Kass Diary, “Shorting Amazon”

Bottom Line

Though Amazon’s sales growth and business successes have been extraordinary — as reflected in a record share price — the company now faces a potential existential threat from both politicians and regulatory bodies.

Few, if any, are aware of this new threat, which is real and, given the current political reality, may even gain bipartisan support.

Given Amazon’s disruptive influence over numerous industries and the associated loss of jobs in what is still a fragile domestic economic recovery, opposition to further company expansion plans finally may be something with which everyone in Washington agrees!

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Bipartisan Political Threat to Amazon May Be on the Horizon.