Amazon.com, Inc. (NASDAQ: AMZN) is increasing the subscription price for Amazon Price from $13 to $15 monthly or $119 to $139 per year. New customers from February 18 will get the new rates, while existing customers will use the new rates on March 25. This is the first time the rates for Amazon Prime have gone up since 2018.
Amazon explained that the increase was due to higher transportation and wages. It also stated that expanding the benefits of Amazon Prime was also responsible for the change. Others add that Amazon’s big plans for Amazon Prime Videos might have also played a part in this.
The company plans to spend $465 million on the first season of the new Lord of the Rings series. Moreover, its purchase of MGM has also contributed to its expenses.
Amazon sets the record for highest single-day gain in the U.S
Although many companies have experienced a drop in stock, Amazon has had a 14% surge. For this reason, the company has added $191 billion to its market value. This came after Meta Platforms Inc (NASDAQ: FB) lost $251 billion in market capitalization.
This news meant this Amazon had beat Apple Inc’s (NASDAQ: AAPL) record for the most significant single-day gain in U.S stock. Apple had previously had a single-day gain of $179 billion.
Meanwhile, Walt Disney Co (NYSE: DIS), Netflix Inc (NASDAQ: NFLX), and Ticketmaster were affected when Amazon’s cloud computing network went down on December 7. The company might face competition from Alphabet Inc Class C (NASDAQ: GOOG), which claims it is more reliable. While Google has remained ahead of other big tech companies, it still hasn’t beat Microsoft Corporation (NASDAQ: MSFT) and Amazon in the cloud computing sector. However, this might all change according to its Cloud CEO, Thomas Kurian, who is looking for ways to beat them.
Former Amazon employee pleads guilty to mail fraud
Meanwhile, a former Amazon Wareham Manager, Douglas Wright, has pleaded guilty to mail fraud. Wright was allegedly involved in a scheme that led to the stealing of $273,000 computers parts. He had admitted to stealing GPUs and internal hard drive processors when he worked at Amazon. Wright could face up to $250,000 in fines and 20 years in prison.
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