"Netflix and Amazon haven't really experienced the intense selling that Facebook did," said Michael Antonelli, an institutional equity sales trader and managing director at Robert W. Baird & Co. "The 'flu' that Facebook got is now spreading to the others."
The Axios report indicated that Trump may target Amazon.com's tax treatment, and whether this materialises or not, it's not the first time he put the retailer in his crosshairs. On December 29, when he blamed the company for squeezing low prices from the US Post Office to deliver packages in his Twitter account, the stock fell 1.4 per cent, which at a time was the biggest drop in more than two weeks. Trump has also called the company an antitrust violator in the past.
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"In a nutshell, the FANG names and the Beltway continue to be on a 'collision course' in the eyes of the Street," said Daniel Ives, chief strategy officer at GBH Insights LLC.
"With Facebook and regulatory worries swirling around tech names, the last thing nervous tech investors wanted to see today was news that Trump is targeting Bezos and Amazon over the coming months."
Overall market weakness isn't helping Amazon shares either. The Nasdaq 100 Index lost 0.5 per cent, on track to post the biggest monthly loss since January 2016. The S&P 500 was 0.1 per cent lower at 2608 at 2.30pm in New York.
The technical battle at 2600 on the S&P 500 is "the most important thing to watch right now and if it holds, everything will bounce, including technology which has worse sentiment now," said Ilya Feygin, senior strategist at WallachBeth Capital LLC. "Growth equities can't be abandoned completely and any bounce should see a nice pop."
Bloomberg
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