Premarket Actions: CEOs like Jeff Bezos face new political realities

by

What is happening: Amazon (AMZN) CEO Jeff Bezos has announced that the company “supports an increase in the corporate tax rate,” as President Joe Biden is pushing for an ambitious infrastructure package. To help pay the bill, Biden has proposed raising the corporate tax rate from 28% to 28%.

“We support the Biden administration’s approach to making bold investments in U.S. infrastructure,” Bezos said. “We recognize that this investment will require concessions from all parties, both on the specific characteristics of what is included and on how it is paid.”

It’s a remarkable announcement, especially considering Amazon has been criticized for paying little or no income tax in recent years. The company reported a US federal tax tax of $ 1.8 billion in 2020, compared to net profit for the year of $ 21.3 billion.

Amazon’s willingness to increase its tax burden comes as the company has been forced to defend itself on other fronts.

The online retailer has clashed with lawmakers in recent weeks over a union vote at an Amazon store in Bessemer, Alabama. Ballots are still being counted, but the vote could mark a big win for organized labor and improve the way the company engages with hundreds of thousands of American workers.

It also needs goodwill given bipartisan momentum for greater regulation of Big Tech companies. I like Facebook (FB) i Google (GOOGL), Amazon faces scrutiny for alleged anti-competitive conduct. Its growth during the pandemic may only have increased the size of the target on its back.
Step backwards: Businesses are preparing for a booming post-pandemic economy that is expected to raise profits and stimulate growth. JPMorgan (JPM) CEO Jamie Dimon, who published his widely read letter to shareholders on Wednesday, told my CNN Business colleague Matt Egan that he has not been so optimistic about the U.S. economy “for a long time.”
But executives also navigate a complicated set of factors that could affect their business: making higher taxes a staple of a long list of concerns. Last week, companies included Delta (FROM) i Coca Cola (KO) condemned Georgia’s controversial voting law after being pressured by activists.

In his shareholder letter, Dimon wrote that America is “clearly under a lot of tension” thanks to the pandemic, racial inequality, rising China and “the divisive 2020 presidential election, which culminated in the Capitol storm and the attempt to upset our democracy. “

The influential business roundtable has pledged to fight higher corporate taxes, which it says will make U.S. companies less competitive. But it should be noted that Amazon has decided to shift its focus to another site.

Coinbase records huge growth ahead of the Wall Street listing

The massive execution of the price of cryptocurrencies has been a great triumph for Coinbase, which will debut on the public market next week.

The latest: The digital currency exchange estimated on Tuesday that it generated revenue of $ 1.8 billion during the first three months of the year. That exceeds $ 1.3 billion by 2020.

Between January and March, the price of bitcoin, the most popular cryptocurrency, went from less than $ 30,000 to more than $ 58,000, while the price of ether doubled.

“We have seen that the high prices of all cryptocurrencies increase the high levels of user activity and trading volume on our platform,” Alesia Haas, CFO of Coinbase, said in a call to investors.

Take a look at this space: California-based Coinbase is the highest-profile company in the cryptocurrency space that is being made public, and its direct listing on the Nasdaq, scheduled for next Wednesday, is drawing a lot of attention.

But the regulation of cryptographic space remains a major risk. Last month, Coinbase reached a $ 6.5 million deal with the Commodity Futures Trading Commission for claims that it delivered false or misleading information about transactions and that a former employee conducted manipulative transactions.

“We are subject to a broad and highly evolving regulatory landscape and any adverse changes or breaches of any laws and regulations that may adversely affect our brand, reputation, business, operating results and financial condition,” the company said. . was warned in the files submitted to the Securities and Exchange Commission.

Topps is made public as trading cards increase

The pandemic has fueled a resurgence in the popularity of trading cards, with fans liking both a new wave of young members and a stream of professional investors looking for profitability.

This has been good news for 83-year-old Topps, whose brand is synonymous with baseball and chewing gum cards. On Tuesday, the company announced plans to merge with a special-purpose acquisition company, or SPAC, according to my CNN Business colleague Paul R. La Monica.

The deal would value Topps at $ 1.3 billion.

Topps has been a publicly traded company several times throughout its decades of business. Most recently, it was privatized in 2007 by an investment firm run by former Disney CEO Michael Eisner. This deal was worth $ 385 million.

The scene: I wrote a deep dive into trading card mania earlier this year, and the hype hasn’t subsided. Last week, a 2000 autograph rookie card for Tom Brady sold for about $ 2.3 million at an auction.

The industry has also received a boost from the craze for non-fungible or NFT chips. Topps has recently expanded its business to sell digital editions of its player cards, each with a unique digital token based on blockchain technology. This creates a shortage that makes them more valuable to collectors.

Until next time

The meeting of G20 finance ministers and central bank governors concludes with a press conference at 10 a.m., Eastern Time.

Today also:

  • The latest data on U.S. crude oil inventories is released at 10:30 a.m. ET.
  • The minutes of the most recent Federal Reserve meeting arrive at 2 p.m. ET.
Next morning: Conagra (CAG), Marks of constellations (STZ) i Levi Strauss (LEVI) report earnings.

.Source