Amazon: Still Plenty Of Room To Pump Up Price Of Prime

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About: Amazon.com, Inc. (AMZN)
by: Reason Investments
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Summary

Prime is worth at least $180 to the average U.S. member today.

Prime’s value per member could more than triple over the long run as more ordering shifts online.

Our updated model assumes the Prime price-cost gap will close, boosting our value estimate for AMZN to $1,250.

Prime is worth at least $180 to the average U.S. member today.

Amazon Prime’s (NASDAQ:AMZN) price increase for annual subscriptions (which account for the vast majority of Prime users) took effect for existing