Amazon Prime Membership Value Significantly Increases
Written by Emily J. Thompson, Senior Investment Analyst
Updated: 1 hour ago
0mins
Source: CNBC
- Membership Value Analysis: JPMorgan estimates that while the annual fee for U.S. Prime members is $139, the actual value exceeds $1,437, highlighting the immense appeal of membership services, particularly as subscriber growth slows.
- Cost Savings: In 2025, U.S. Prime members are projected to save an average of $550 on delivery fees, a 10% increase from the previous year, which not only enhances user satisfaction but also strengthens Amazon's competitive edge in a fiercely contested market.
- Global User Growth: Amazon is expected to reach 370 million Prime users worldwide by year-end, with 139 million in the U.S. and 231 million internationally, indicating significant potential in international markets where penetration could rise from 33% to 45%.
- Revenue Growth Potential: JPMorgan predicts that Prime Day could generate an incremental $7 billion to $8 billion in revenue for the second quarter, while potential future membership fee increases could drive an additional $3 billion in annual sales, demonstrating Amazon's ongoing profitability in membership services.
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Analyst Views on AMZN
Wall Street analysts forecast AMZN stock price to rise
44 Analyst Rating
41 Buy
3 Hold
0 Sell
Strong Buy
Current: 232.790
Low
175.00
Averages
280.01
High
325.00
Current: 232.790
Low
175.00
Averages
280.01
High
325.00
About AMZN
Amazon.com, Inc. provides a range of products and services to customers. The products offered through its stores include merchandise and content it has purchased for resale and products offered by third-party sellers. The Company’s segments include North America, International and Amazon Web Services (AWS). It serves consumers through its online and physical stores and focuses on selection, price, and convenience. Customers access its offerings through its websites, mobile apps, Alexa, devices, streaming, and physically visiting its stores. It also manufactures and sells electronic devices, including Kindle, Fire tablet, Fire TV, Echo, Ring, Blink, and eero, and develops and produces media content. It serves developers and enterprises of all sizes, including start-ups, government agencies, and academic institutions, through AWS, which offers a set of on-demand technology services, including compute, storage, database, analytics, and machine learning, and other services.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
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- Appeal Plans: Amazon expressed dissatisfaction with the ruling and plans to appeal, arguing that a court could potentially overturn the decision, a strategy that may affect its future relationship and negotiations with the union, increasing uncertainty.
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