Amazon (NASDAQ:AMZN) stock has been a big winner for investors under the Trump administration despite many odds. The stock has gained about 170% since President Trump took office on January 20, 2017. Alphabet (NASDAQ:GOOGL) and Facebook (NASDAQ:FB) stocks have gained about 85% and 65% during that period, respectively.
Amazon stock has risen despite clashes with Trump
Amazon stock has risen amid big clashes between the company and President Trump. The stock has risen even though CEO Jeff Bezos continues to dump large amounts of shares. Bezos sold about $4.1 billion in Amazon shares in the past week alone, according to CNBC. Last year, he sold $2.8 billion in Amazon stock in one week soon after finalizing his divorce.
In addition to Amazon stock’s big gains since President Trump took office, here are three other must-knows.
Trump testimony in Pentagon’s JEDI contract dispute
Amazon thinks that President Trump interfered in the Pentagon awarding the JEDI cloud computing contract. The company competed with Microsoft (NASDAQ:MSFT) for the contract and appeared to be the frontrunner. To Amazon’s surprise, the Pentagon awarded the $10 billion JEDI contract to Microsoft. The company protested Microsoft’s JEDI win and sued to reverse it.
Amazon stock has gained 25% since the company filed its lawsuit challenging the Pentagon’s decision to deny it the JEDI contract.
Trump accuses Amazon of dodging taxes
President Trump has been a big critic of Amazon’s tax record. He thinks that Amazon has found ways to dodge paying taxes. However, the company has swiftly defended its tax record. Amazon paid $162 million in federal taxes in 2019. Notably, the company didn’t pay any federal taxes in 2018 and 2017.
Amazon isn’t the only big tech company whose tax record has been questioned. The IRS is dragging Facebook to court in a tax dispute that could cost the social media giant over $9.0 billion.
Unfair advantage in the retail business
Amazon and President Trump have also clashed due to antitrust issues. President Trump thinks that Amazon enjoys an unfair advantage in retail competition, particularly against its traditional rivals. Amazon, alongside Google and Facebook, is the subject of antitrust investigations by the Trump administration.
Despite Bezos’s big stock sales and ongoing struggles with President Trump, investors still have an appetite for Amazon stock. As of the closing on Monday, Amazon stock has gained about 16% YTD (year-to-date). The company is ahead of all of the other FAANG companies. Netflix (NASDAQ:NFLX) and Alphabet have gained 15% and 13% YTD, respectively. Meanwhile, Apple and Facebook have gained 9.5% and 3.8% YTD, respectively.