The first paragraph:
Shares of Amazon are getting smacked again early today after the company was downgraded from "Buy" to "Neutral "with a $375 price target. UBS analyst Eric Sheridan said a survey of Amazon customers indicated that only 24% would renew their Amazon Prime memberships if the company raised the annual price to $119 from the current $79. During its most recent conference call Amazon executives hinted that they were considering hiking the price of Prime membership anywhere from 20 to 40%.Last paragraph:
[The analyst says he owns] Amazon shares and added to the position after the company missed earnings. $350 is support. There are at least 99 things that worry me about the position but the idea that customers wouldn’t be willing to pay an additional $20 for 2-day shipping, free streaming service and at least half a dozen other benefits related to being Prime members simply isn’t one of them.That was not the question (survey). The question (survey) was for an annual price increase to $119 from the current price of $79.
$119 - $79 = $40.
My hunch is that a lot of folks won't even renew at $79.
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