Amazon to Raise Fees for Prime Delivery and Streaming Service in Europe and U.K.

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Amazon’s ($NASDAQ:AMZN) prime membership program, Amazon Prime, has announced that it will raise fees for its delivery and streaming service Prime in Europe and U.K. by up to 43% a year amid combating higher costs. This is just days ahead of its quarterly financial results scheduled on July 28, 2022. Amazon sites covering Spain, Italy and France will charge Prime members between 39% and 43% more yearly while U.K. will have a 20% increase, Reuters reported. In the U.S., prices were hiked in February. It is yet to be seen how this will affect AMAZON.COM’s market and earnings in the long term.

However, given the company’s size and dominance in the e-commerce and streaming spheres, it is likely that this will not have a significant impact.

Market Reaction

After news of the fee increase was released, media coverage was mostly positive. On Tuesday, Amazon’s stock opened at $115.8 and closed at $114.8. The price increase comes as Amazon is facing increased competition from streaming services like Netflix and Hulu. In addition, the company is investing heavily in its Prime Video service, which offers original programming like The Grand Tour and The Man in the High Castle.

VI Analysis

Company’s fundamentals reflect its long term potential, below analysis on AMAZON.COM are made simple by VI app. VI Star Chart shows that AMAZON.COM is strong in asset, growth, medium in profitability and weak in dividend. AMAZON.COM has a high health score of 8/10 with regard to its cashflows and debt, is capable to pay off debt and fund future operations. AMAZON.COM is classified as ‘cheetah’, a type of company that achieved high revenue or earnings growth but is considered less stable due to lower profitability. At the right price, it is suitable for those who wants to invest for high capital gains. High growth companies are deemed more volatile as they attempt to grow faster.

Summary

As one of the world’s largest online retailers, Amazon.com has a lot to offer investors. The company has a strong track record of growth, and its shares have performed well in recent years.

However, Amazon.com is facing some headwinds in Europe and the United Kingdom. Despite these challenges, Amazon.com remains a strong company with a lot to offer investors. The company is continuing to invest in new areas, such as cloud computing and artificial intelligence. Amazon.com is also expanding its physical presence with new warehouses and distribution centers. Amazon.com is a strong company with a bright future, and its shares are likely to perform well over the long term.