Transcript for Amazon stock plunges after Trump’s tweets
Moving on now president trump’s growing attack on Amazon. The president on Twitter lashing out at one of the world’s biggest retailers and just like that Amazon’s stock plunged and Rebecca Jarvis is here and, Rebecca, this war seems to be getting personal. That’s right. This is the company where millions of Americans buy everything from electronics to paper towels. It is a stock that most Americans with a 401(k) Own in their savings account and the repeated Twitter attacks from the president are taking their toll. President trump threatening major changes for Amazon. On Monday tweeting 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. Also our fully tax paying retailers are closing stores all over the country. Not a level playing field. It’s all part of a tweet storm aimed at the tech titan. The president suggesting rate hikes for shipping Amazon packages sending shares of Amazon spiraling down more than 5%. Amazon’s CEO Jeff bezos who also owns “The Washington post” once invited to be on the president’s tech council. Now caught in the crosshairs. How much money is the postal service losing on its deal with am song? According to its own website by law the postal service must cover its costs on all deliveries including Amazon packages. Amazon which uses the postal service in the final leg of package delivery does get a high volume discount. Also at issue taxes. While Amazon paid a total of $957 million worldwide last year and collects sales taxes in the 45 states which require it in most states the tech titan does not collect taxes on the products third-party vendors sell on its site. A significant advantage the e-commerce giant has over brick and mortar competitors. In the meantime, your department stores are all going out of business because it’s unfair competition. Reporter: Last year a record 7,000 stores closed and retailers cut 67,000 jobs overall while Amazon announced it would add 100,000 jobs by mid-2018 so mid this year. We saw those stocks fall yesterday. Other tech stocks are taking a hit. How much of this has to do with what they might be seeing as uncertainty about what’s happening in Washington? That’s certainly a part of it, Cecilia. Overall tech stocks have been dropping in recent weeks and we’ve search that with Facebook, Netflix, apple, of course, Amazon which we’re talking about here, Google’s parent company alphabet and that uncertainty does play a role, for example, with Facebook, the privacy scandal, that certainly is regulatory uncertainty hanging over that name and for Americans the two important thing, a, we use these company, B, they’re in most people’s retirement savings accounts whether you own them outright or in a mutual fund. You’ll be busy with this one for the weeks to come. The president not only
This transcript has been automatically generated and may not be 100% accurate.