Amazon (AMZN) is planning a $1 million donation to President-elect Donald Trump’s inaugural fund, according to an exclusive Wall Street Journal report. This move is part of an effort by founder Jeff Bezos and other tech leaders to strengthen ties with the incoming administration. Bezos, the e-commerce giant’s executive chairman, is also set to meet Trump next week at Mar-a-Lago in Palm Beach, Florida, according to the report.
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Tech Companies Work to Mend Ties with Trump
This gesture comes as tech companies, long a target of Trump’s criticism, work to smooth ties with him. In fact, Meta Platforms (META), led by Mark Zuckerberg, has also pledged $1 million to Trump’s inaugural fund. Amazon’s decision to donate to Trump’s inaugural fund was finalized earlier this week and conveyed to Trump’s team. Additionally, Amazon plans to stream the inauguration via Prime Video, an in-kind contribution valued at $1 million.
AMZN’s Bezos and Trump Have Been Involved in Feuds
This marks a stark contrast to Amazon’s inaugural contributions of $58,000 in cash and in-kind support to Trump’s inauguration in 2017, during a period when other tech firms donated more generously. Bezos and Trump have had a contentious history, fueled by Bezos’ ownership of The Washington Post. Bezos once joked about sending Trump to the moon via his space company, Blue Origin, while Trump accused the Post of lobbying for Amazon. In 2015, Trump tweeted, “If @amazon ever had to pay fair taxes, its stock would crash and it would crumble like a paper bag. The @washingtonpost scam is saving it!”
Amazon’s run-ins with Trump extended to a Pentagon cloud computing contract worth $10 billion. Amazon alleged in a complaint that Trump exerted improper pressure to steer the contract away from Amazon Web Services (AWS), an accusation the Pentagon denied. Meanwhile, Amazon faces ongoing antitrust scrutiny from the Federal Trade Commission.
Bezos Has Been More Positive Towards Trump
Recently, however, Bezos has struck a conciliatory tone, congratulating Trump on his political comeback and expressing optimism about a second Trump presidency. He noted at a New York Times conference that Trump is “calmer than he was the first time and more confident, more settled.”
What Is the Target Price for AMZN?
Analysts remain bullish about AMZN stock, with a Strong Buy consensus rating based on 46 Buys and one Hold. Over the past year, AMZN has surged by more than 50%, and the average AMZN price target of $241.95 implies an upside potential of 5.7% from current levels.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
