The street likes what it hears. This morning, prior to the market opening, Amazon announced that it was raising the price of its Prime subscription membership by $20 to $99 a year. The company’s stock followed suit and opened the day at $376, trading at up 1.63% on the day.
Still, even with the dip six weeks ago, the stock price is up 35% year over year, and currently trading at $380 a share. Most research firms list the stock with a buy rating.
Today’s news follows weeks of speculation stating that Amazon could increase the price of its popular Prime service that grants members with access to free 2-day shipping on many items, access to a Netflix-like streaming service and the ability to read Kindle books through the Kindle Lending Library.
The new price is an increase of 20%. But as a long time Prime subscriber, I’ll be the first to stand up and state the service is still worth the extra money. It pays for itself with several purchases.