Watch: Trump tweets wipe out billions in Amazon shares

Amazon shares fell sharply on Monday as President Trump continued to attack Jeff Bezos-owned online retailer over it use of US postal service.

Shares of Amazon went down 5.9 per cent at $1,362.48, wiping out nearly $45 billion from its market value.

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In a tweet last week, the US president had said that if US postal service "increased its parcel rates" it would mean Amazon’s shipping costs would rise "by $2.6 billion."

The revenue of US postal service has been declining for years. In November the postal service had reported a decline in annual revenue, hurt by a drop in first-class and marketing mail. However, the package delivery system had shown a marked uptick.

"We believe the US Postal Service (USPS) has gained share from Amazon which is helping the USPS stay afloat," Morgan Stanley analysts wrote.

"President Trump's comments are consistent with industry sources we have spoken to in the shipping industry, who often label Amazon's deal with the USPS as a sweetheart deal," DA Davidson analyst Tom Forte wrote in a note.

"An argument, however, could be made that the USPS was losing billions before it expanded its service offerings for Amazon and would, still, likely lose billions if Amazon discontinued its use of the USPS tomorrow," Forte said.

Amazon hasn't disclosed its payment structure with UPS and did not react on the recent Trump tweets against the company.