Amazon is raising the price of Prime to $119

  • Amazon is raising the price of Prime to $119

Amazon is raising the price of Prime to $119

To be sure, on a sequential basis, Amazon has clocked much higher losses in its global business in previous quarters.

Cypress Semiconductor on Thursday reported first-quarter net income of $9.1 million (2 cents per share), after reporting a loss in the same period a year earlier.

The company earned $1.63 billion, or $3.27 per share, in the three months ending March 31 - nearly triple the $1.24 per share analysts expected, according to FactSet.

Amazon's sales for the quarter hit $51 billion, up 43% year over year, fueled in part by the cloud. This price increase isn't insignificant, but if you regularly use those services, Amazon Prime could still be worth it at its new price. CNN reports that Prime offered free two-day shipping to members on 20 million products. Analysts expected sales of $49.9 billion, according to Yahoo Finance.

The US$700bn company recently introduced a new delivery service for Prime customers which means items can be delivered into the trunk of their auto, while Amazon will reportedly spend around US$6bn this year to beef up its video offering.

Third-party sellers are a beneficiary of Amazon's strong quarter.

Operating income increased 92% to $1.9 billion in the first quarter, compared with operating income of $1.0 billion in first quarter 2017.

Amazon, founded 24 years ago as a online bookseller, has grown into a multi-billion-dollar tech juggernaut with a hand in number of industries, including groceries, private-label clothing and movie production. Shares jumped in after hours trading. The stock's price-to-earnings ratio is more than 11 times that of cloud-computing rival Microsoft Corp.

Sales for Amazon Web Services jumped 49 percent to $5.4 billion.

"The value of Prime to customers has never been greater", Brian told investors. He added that costs related to data centers, fulfillment centers and other investments "scale really well when we have high-volume quarters" like the one Amazon reported. One of their big Prime Video projects is turning Lord of the Rings into a television series. With Amazon now posting regular profits, following years of losses and almost break-even quarters, it's in a far stronger position to sustain a hike in postal rates, but that's likely something it would like to avoid.

And Amazon is expanding its retail footprint outside the United States, particularly in India.