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In 2014 Amazon Prime membership growth of 53%, stock returns than expected to boost prices


Amazon released 2014 Q4 earnings.Results showed that the Amazon in the fourth quarter net profit of $214 million, $239 million down 10% from a year earlier;Net sales of $29.328 billion, up 15% from a year earlier.Earnings per share than Wall Street analysts’ expectations, promote its after-hours shares surged nearly 8%.

In a conference call, Mr Bezos thought to the Amazon Prime membership price increases from $79 to $99 is the “correct decision”.

Over the past year Amazon Prime members on the basis of the original grade tens of millions of users increased by 53%, including the United States (50%), growth is even higher than abroad.We have invested on Amazon Prime logistics service billions of dollars, are still in the Prime Instant spent $1.3 billion on the Video.

The Amazon Prime service including free logistics and Netflix’s streaming media like TV, members can also receive streaming music directory, wireless photo storage, exclusive to certain products, such as preferential discount.In the New York area, Amazon Prime also launched the “one hour delivery” service.

Amazon’s CFO Tom Szkutak did not disclose the Amazon Prime membership Numbers, but referred to the “Prime membership consumption much more than the number of the Prime membership.”According to the market Research firm Consumer Intelligence Research Partners (CIRP) report, Amazon Prime members up to 40 million people in the United States, Amazon Prime members average consumption on Amazon’s website is as high as $1500 a year, average annual consumption of $625 for non-members.

For the first quarter of 2015, analysts expect Amazon on revenue of $23.14 billion, while Amazon claims would be between 2.09 billion and 2.29 billion.Q1 2015 will also usher in a new changes, Amazon AWS will separate disclosure of financial data, they never disclosed the AWS financial performance in the past, only the classified as “other businesses” in North America, which also includes advertising services and co-branded credit card agreements, etc.At present, the AWS rivals such as Google, Microsoft and IBM.

Throughout 2014, Amazon’s net loss of $241 million, and 2013 net income of $274 million for the fiscal year;Operating income of $178 million, is a much lower $2013 in 745 million.The main reason of Amazon in 2014 to invest a lot of, in addition to the aforementioned Amazon Prime service upgrade, Amazon also launched the Fire Phone, Echo, such as hardware, and try to involved in smart home, at the same time on-line take-away meals, hotel booking and other services.Outside the United States, the dealer market Amazon20 $bet on India’s electricity.