British PM, Theresa May, met with Amazon.com, Inc. on the 19/09/2016 to discuss their role in the UK in a post-Brexit context. She also met with representatives from a range of other corporations, including American financial giant, Goldman Sachs. Other firms, such as BlackRock, and Morgan Stanley, were also present.
To the companies, Theresa May said “Every working day in the United Kingdom one million people wake up and go to work for an American company. And every day in the United States one million people wake up and go to work for a UK company. So you see there is reciprocity. The UK is going to be out there. We will be looking for business. And ladies and gentlemen, please feel free to invest in the UK.”
Brexit Impacts Companies Such as Amazon.com, Inc. (AMZN)
After the British public decided to leave the EU via the referendum on the 23/06/2016, the value of the British Pound fell drastically relative to other currencies, such as the US Dollar and Euro. Around 3 months on, the UK’s domestic currency is still cheap relative to other currencies. This makes UK exports more affordable for other countries, while making it more expensive for British consumers and businesses to import goods.
For a multinational corporation like Amazon.com, Inc. , this can have profound effects on there costs and profits. Theresa May is meeting with these corporations in a bid to reassure them.
Amazon.com, Inc. Has Been Thriving
Amazon’s success over the past few years has propelled their CEO, Jeff Bezos, into 3rd position on the world’s rich list. The company saw its profits rapidly grow in 2016 in comparison to 2015. Specifically, the firm generated a profit of $857 million in 2016, up from just $92 million in 2015.
As of the 20/09/2016 (pre-market), a share in Amazon.com, Inc. is currently valued at $775.10, giving the company a market cap of $371.67 billion.