Online retailing behemoth Amazon announced Thursday that it will be raising the price of its Prime memberships, citing rising costs.
In a Q4 letter to investors, Amazon said that higher wages and rising transportation costs prompted the company to raise its subscription price.
Starting February 18th, monthly Prime memberships will go from $12.99 to $14.99, and annual memberships will rise to $139 from its current price of $119.
The hike in Prime subscription prices comes despite Amazon blowing away earnings estimates in Q4. Analysts expected Amazon to have an earnings-per-share of $3.44 in Q4, but it instead had an EPS of $27.75, causing the stocks profit to soar in after-hours trading.
“Despite the positive reaction, Amazon faces a challenging period ahead as it deals with slowing sales growth and rising costs in the post-pandemic environment,” analyst Jesse Cohen told Fox Business.
“That said, Amazon’s impressive results are just what the tech sector needed to stop the bleeding,” he added. “The e-commerce giant’s big beat could be the much-needed catalyst to spark a rally in the tech space.”
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9 Responses
Online retailing “behemoth”…
Yeah They are a bunch of behemot raising prices like crazy.
Yeish lo mea, roitse masaim !
They initiated their own delivery service and discontinued using UPS and FedEx because, they said, “we could do it a lot cheaper!”
And like suckers we go along with it. If 200 million people cancel they will be quick to lower the price.
Consumers can decide for themselves if they want to continue to use Amazon. I have an email from last spring announcing these up coming changes for 2022. It didn’t come as a surprise to me.
They are trying to make up for the loss of 300 million dollars in stolen goods from the railroad tracks in California.
The reality is, that anyone who was willing to pay 120$ for it, will still pay the extra 20$
Bidenflation.
Bidenflation. That’s what it is.
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