U.S. Supreme Court building in Washington, D.C.

Online retail stocks such as Amazon.com, Ebay.com and Overstock.com sank in early trading on Thursday after the U.S. Supreme Court issued a 5-4 ruling that opens the door for states to charge sales tax on e-commerce purchases.

Amazon’s stock is trading at a 7-point deficit, as of 12:02 E.T., after rebounding from a 38-point drop. Meanwhile, Ebay and Wayfair are down roughly 1 percent, Shopify is down 2 percent and Overstock is down 3 percent.

In the case of South Dakota vs. Wayfair Inc., the court ruled in favor of South Dakota, allowing the state to move forward with its legislation requiring out-of-state retailers to pay sales tax if they “deliver more than $100,000 of goods or services into the state or engage in 200 or more separate transactions.”