Today, President Trump again took to Twitter to accuse Amazon of paying “little or no taxes.” His tweet sent the stock down about 4 percent this morning as investors feared Trump could raise taxes on the e-commerce company or try to break it apart.
Amazon’s stock always recovers after a Trump tweet makes it fall
In the past year, Amazon’s average daily price change has been about 0.3 percent.
Alex Wong/Getty Images
Rani Molla was a senior correspondent at Vox and has been focusing her reporting on the future of work. She has covered business and technology for more than a decade — often in charts — including at Bloomberg and the Wall Street Journal.
But, just a few hours later, the stock has recovered and is up about 1 percent today. In fact, that’s the recurring theme to any Trump-induced stock plunge for Amazon. After it falls, it always recovers, either within a few hours, or up to a month at the longest count.
In the past year, Amazon’s average daily price change has been about 0.3 percent, according to FactSet, so sending the stock down several percentage points is a big drop. However, the fall is usually short-lived, like today:
As you can see, after this morning’s tweet, Amazon stock came back up to pre-tweet levels at around 1:30 pm ET.
(Yesterday, there was another Trump-induced Amazon stock plunge after a news report outlined his obsession with reining in Amazon. That sent the stock down about 5 percent, but, technically, that wasn’t a tweet.)
Below is a look at some of Trump’s other tweets about Amazon and how the stock has behaved in their wake. It’s important to note that there are lots of other things going on in the world besides Trump’s tweets that could affect the stock, but the president certainly has an impact.
In general, these tweets seem to have no lasting effect on Amazon’s stock price. In the last 12 months, the stock has climbed 67 percent:
This article originally appeared on Recode.net.
