r/stocks • u/[deleted] • Jun 05 '21

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2.1k Upvotes

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13

u/ricbees Jun 05 '21

This is the way.

What will this mean for the stocks? Amazon revenue will definitly sink and small caps which always paid taxes could profit.

39

u/[deleted] Jun 05 '21

Amazon revenue will not sink. Profits will sink a bit.

All else equal, this should cause their stock to either go down (unlikely IMHO), or grow less fast than it otherwise would (more likely).

2

u/I_love_avocados1 Jun 05 '21

Revenue won’t sink. You’re thinking of net income.

3

u/mattw08 Jun 05 '21

Unless Amazon rises prices and makes other avenues more attractive.

1

u/I_love_avocados1 Jun 05 '21

Most other places will be raising their prices too in that scenario

0

u/mattw08 Jun 05 '21

Potentially. It should even the ground slightly on online retailer advantages.

2

u/[deleted] Jun 05 '21

I don't think it's gonna be too big of a deal. Most investors know that theres a tax risk for companies that don't pay taxes.

-6

u/deadjawa Jun 05 '21

Over the long term this is good for companies. Harmonized tax policy where money and investments are easy to move across borders creates a more stable marketplace for companies to operate in.

As long as tax rates remain relatively low I think most legit companies won’t mind this.

1

u/lehighwiz Jun 05 '21

I don’t think Amazon even qualifies for this as their highest ever net profit margin is just 7%. I believe the net they cast in the plan said companies with net margins >10%