Amazon spending $800 million to upgrade Prime delivery
At its investor briefing last month, Amazon (AMZN) reported revenue and profit above analysts’ average expectations, and stated that it is planning to speed up free deliveries for Prime customers to just one day instead of two. Upgrading the standard Prime free delivery program, set to cost Amazon $800 million in the current quarter alone, may take some shine off Amazon’s bottom line in the near term. However, the company believes the sacrifice will unlock many benefits down the road.
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Amazon looking for differentiation as rivals catch up
The Prime membership program helps Amazon recruit high-value retail customers, so the company is always looking for new ways to make it more attractive. Also, Walmart (WMT) and Target (TGT) have caught up with Amazon in two-day free shipping, raising the company’s need to find new ways to stand apart, and shortening package delivery time is one way to do so. Prime membership, which costs members $119 annually, brought Amazon $4.3 billion in subscription service revenue in the first quarter.
Prime members help Amazon attract advertisers
Amazon Prime customers spend an average of $1,400 every year on Amazon retail shopping, while regular customers spent $600, according to Consumer Intelligence Research Partners. Given Prime members’ heavier spending, businesses and brands are putting more toward Amazon advertising to catch customers’ attention, giving Google (GOOGL) and Facebook (FB) tough competition for digital advertising dollars.
Amazon (AMZN) has come up with a new program to provide up to $10,000 to departing employees wishing to start their own package delivery business.
After opening on a bearish note on Wednesday, Tesla (TSLA) was trading with 4.8% losses for the day, near $195.25 at 1:16 PM ET.
With voting conducted in seven phases panning six weeks, India’s (EPI) elections have been a grand affair—to say the least. Tomorrow is the day of the results.
Qualcomm (QCOM) stock fell more than 10% in the first half of trading on May 22 after it lost its licensing lawsuit with the US FTC (Federal Trade Commission).
Apple (AAPL) suffered a setback recently when the US Supreme Court allowed an antitrust lawsuit against the company to proceed.
Today doesn’t seem to be a good day for electric vehicle companies. Earlier today, NIO stock hit an all-time low of $4.00.
The cannabis sector has been struggling to find direction on May 22, with cannabis stocks trading on a largely mixed note in the first half.