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Amazon hikes Prime subscription price up to $139 per year


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Amazon hikes Prime subscription price up to $139 per year

Amazon.com Inc. is hiking the price of Prime membership in the United States to $139 per year, up from the $119 annual fee that was announced four years ago. According to analysts, the fare hike is meant to address higher costs Amazon is facing across the board, from construction to labor to shipping.

The change in membership fee will affect current members after March 25th and for new members on February 18th. The cost of a monthly membership to Prime is also going up to $14.99 per month from the existing $12.99 per month.

Amazon’s stock rose as much as 17% in extended trade as Amazon also beat profit expectations for the holiday season. If the stock prices increase on Friday by that much, it would be the stock’s most significant percentage gain since October 2009 and grow founder Jeff Bezos’ total valuation by about $20 billion.

Higher costs across the board led Amazon’s operating income to dip substantially during the final quarter of 2021, falling to $3.5 billion from $6.9 billion in 2020. It marked the dip in Amazon’s profit for the second quarter in a row.

Amazon last raised the subscription fee for Prime in 2018.


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