Amazon.com (AMZN) Prime Hike to Add Up to $0.55/Sh to Bottom-Line, RBC Capital Says

RBC Capital analyst Mark Mahaney weighed in on news Amazon.com (NASDAQ: AMZN) is raising the U.S. Amazon Prime fee from $79 to $99 annually.

"Assuming a U.S. Prime sub base of approximately 20MM, we believe that the price increase will generate between $300MM and $400MM in incremental annual operating income – assuming a churn of 1% to 5%," Mahaney said. " Which would translate into incremental earnings per share of approximately $0.45 to $0.55."

The analyst maintained an Outperform rating and price target of $425 on the stock.

For an analyst ratings summary and ratings history on Amazon.com click here. For more ratings news on Amazon.com click here.

Shares of Amazon.com closed at $370.64 yesterday.

---

Serious News for Serious Traders! Try StreetInsider.com Premium Free!

---

You May Also Be Interested In

• Dominion Resources, Inc. (D) PT Raised to $43 at BofA Securities
• SunPower (SPWR) discloses plans to restate some earnings
• Goldman Sachs Comments on Sherwin-Williams (SHW) Earnings