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This Is the Risk Amazon.com, Inc. (AMZN) Faces From Trump

By U.S. News & World Report

President Donald Trump is continuing his assault on Amazon.com, Inc. (Nasdaq: AMZN), sending the stock down another 5.2 percent Monday. While some Wall Street analysts say Amazon is mostly shielded from a potential regulatory crackdown in Washington, others are concerned Trump’s words may be doing more damage than investors realize.

Last week, Axios reported that Trump is “obsessed” with Amazon and its CEO and world’s wealthiest person, Jeff Bezos. Trump is reportedly looking for ways to increase Amazon’s tax burden or potentially target the company via antitrust law.

[See: Artificial Intelligence Stocks: The 10 Best AI Companies.]

Trump, who has a history of publicly criticizing Amazon, Bezos and the Bezos-owned Washington Post, blasted Amazon on Twitter once again on Monday.

“Only fools, or worse, are saying that our money losing Post Office makes money with Amazon. THEY LOSE A FORTUNE, and this will be changed. Also, our fully tax paying retailers are closing stores all over the country…not a level playing field!” Trump tweeted.

Amazon doesn’t get a special rate from the U.S. Postal Service. But writing in the Wall Street Journal recently, money manager Josh Sandbulte explains that a formula set by Congress to keep the Postal Service from undercutting public shipping companies like United Parcel Service ( UPS) and FedEx Corp. ( FDX) hasn’t been adjusted since 2006. The law was written with the assumption that package delivery would be about 5.5 percent of Postal Service profits, but now parcels make up 25 percent of its revenue.

Last year, Citigroup estimated that if parcel service was accurately priced by the Postal Service, each package would be $1.46 more expensive to deliver. And since Amazon ships 40 percent of its packages through the Postal Service, it’s realizing a huge cost savings.

[See: 8 Stocks Primed for an Amazon.com Buyout.]

Bank of America analyst Justin Post says raising Amazon’s Postal Service shipping fees likely wouldn’t have much impact on the company in the long term.

“We assume higher fees would be offset by Amazon moving volumes to other shippers or just accelerating their own fulfillment build out,” Post says.

However, GBH Insights head of technology research Daniel Ives says Amazon’s current business may not be at risk, but it could become more difficult for the company to expand in the future. Regulatory concerns may also impact Amazon management’s long-term strategy.

“The lingering worry is that Trump and influencers within the beltway could present potential blockades around Amazon expanding further into health care/generic drugs and other consumer areas over the coming year on the broader anti-trust concerns thesis, which has been lingering in the background,” Ives says.

Despite the concerns, Post says Amazon is still a safe long-term bet for investors.

[See: 7 of the Best Tech Stocks to Buy for 2018.]

“While regulatory risk can add volatility for the stock, and it’s hard to envision every potential outcome, we don’t see a scenario that materially reduces the long-term value of the company,” he says.

Bank of America has a “buy” rating and $1,650 price target for Amazon. GBH Insights has a “highly attractive” rating and $1,850 target for AMZN stock.

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This Is the Risk Amazon.com, Inc. (AMZN) Faces From Trump originally appeared on usnews.com

Don’t Settle for Student Loans to Pay for Online Education

By WTOP Staff
Online college programs are becoming a more popular choice for prospective students, with one study finding that more than 6 million students enrolled in at least one online course in fall 2015. The popularity of these courses can be attributed in part to their flexibility with working adults' schedules, students' ability to progress more quickly through online programs and, oftentimes, cheaper tuition. [See 10 low-cost online bachelor's programs for out-of-state students.]Online degrees can be beneficial to many college students, but some studies have shown online learners complete their programs at lower rates than students at traditional brick-and-mortar campuses. Individuals with student loans but no degree comprise two-thirds of defaulted borrowers. Though these numbers are not encouraging, just like for traditional programs, there are ways to reduce how much you'll need to borrow for an online program to ensure you won't become one of these statistics. Don't just settle on borrowing student loans to cover the whole cost of your program and living expenses. Instead, start thinking about how to cut costs and cover your balance in different ways, such as the following. -- Grants and scholarships: Even though you are taking an online course, you can still apply and receive grants and scholarships. But your first step should be to complete the Free Application for Federal Student Aid, commonly referred to as the FAFSA, which will allow you to receive a Pell Grant if your expected family contribution is low enough. The EFC criteria and award amounts are adjusted annually, but the 2017-2018 academic year awards range from $606 to $5,920, which could significantly lower the amount you borrow annually. Your next step is to apply for scholarships. You can start by checking online scholarship search engines, such as the Salt Scholarship Search, College Board's BigFuture and Peterson's. But don't forget to take advantage of local organizations and your school's financial aid office. Both may offer scholarships that you can't find with a national scholarship search. [Review these 10 sites to kick off your scholarship search.]For instance, organizations like the Elks Club, Knights of Columbus or the Rotary Club typically offer scholarships annually to local students. Just because you're going to school online doesn't mean you're ineligible. Visit your local library for scholarship listings, and ask around town. You might be surprised how many local organizations offer scholarships. While these scholarships typically aren't large, every little bit counts. Each dollar you receive in a scholarship is a dollar you don't have to borrow and pay interest on. -- Work-study: Another option for online students may be work-study awards. Not all students enrolled in online programs are eligible, but students at some schools -- including, for example, SUNY Empire State College and Liberty University -- are. Work-study awards are not given upfront like scholarships and grants. In most cases, they are an offer to earn up to the awarded amount if you secure an eligible work-study job. While there is a misconception that all work-study jobs must be on campus, students can work for off-campus, nonprofit or public employers as long as the work is in the public's interest. You may be able to work for a for-profit employer if the job is relevant to your course of study. No matter who the outside employer is, it will need to have an established agreement with your college for you to receive work-study funds. Remember, to be eligible for federal financial aid, you must be enrolled and pursuing a degree or certificate. If you're not working toward a credential, Pell Grants and work-study won't be option, but you may still be able to take advantage of private scholarships -- just be sure to read the eligibility criteria carefully. [Explore what to know about financial aid in online programs.]-- Pay as you go: One of the great benefits to enrolling online is the flexible schedule, which can allow you to complete your college coursework around your responsibilities. But prospective students often overlook using their part- or full-time job earnings as an option for paying for college. Almost 80 percent of college students in 2015 worked at least part time while attending classes, according to the National Center for Education Statistics. By budgeting and thinking strategically about your college costs, you can likely reduce your dependence on student loans by paying a portion out of pocket. Many -- but not all -- online programs are less expensive than traditional programs and often have shorter payment periods. Six, eight or 10 weeks are common course durations. Because of the frequency of payments in an online setting, you may be well-placed to pay as you go and possibly avoid borrowing altogether. Attending college online and avoiding student loans may be challenging, but if you are willing to put in the effort, you can limit the amount you need to borrow. More from U.S. News Q&A: Understanding Student Loan Discharge Eligibility Student Loan Refinancing Isn't Right for All Borrowers
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