The cost of your Amazon Prime subscription is increasing

Leigh Mccormick
April 27, 2018

Amazon's first-quarter profit more than doubled from a year ago, blowing past Wall Street expectations. However, global sales were also up a significant 34 percent to $14.8 billion, showing that Amazon continues to drive new growth in expanding markets. The company's commitment to profitability struck a cord with investors, sending the stock up more than 6 percent during after-hours trading on the Nasdaq.

Net income was $1.6 billion in the first quarter, or $3.27 per diluted share, compared with net income of $724 million, or $1.48 per diluted share, in first quarter 2017.

Amazon shares closed Thursday up almost 4 percent to $1,517.96.

Sales from Amazon's Web Services division drove much of the growth, as they were up 49 percent to $5.4 billion.

The company has also found success with its own streaming music and movie services, one of the perks of its Amazon Prime, which the company says now has 100 million members.

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Inc. said revenue soared 43 percent to $51 billion, beating the $49.9 billion analysts expected. The same period from previous year had $1.48 in EPS on $35.71 billion in revenue.

Amazon CFO Brian Olsavsky said the company hadn't increased the price of membership since March 2014 (it jumped from $79 to $99 then), and in the time since "we continue to increase the value of Prime".

"Amazon and its consumer flywheel continue to accelerate in the market, both domestically and globally and is showing no signs of slowing down", Ives wrote.

The price of the annual Prime membership is increasing from $99 to $119 on May 11 for new members. "That's why you're seeing this remarkable acceleration in AWS growth, now for two quarters in a row", CEO Jeff Bezos said in a statement.

The Redmond, Wash., company said revenue from its Azure cloud computing service grew 93 percent during the quarter, keeping up the momentum in that space for several quarters.

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