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Amazon's Jeff Bezos touts 100 million subscribers

Discussion in 'Economy' started by Susan Addams, Apr 19, 2018.

  1. Susan Addams

    Susan Addams Unregistered User

    Bezos made this announcement Wednesday. The previous "well known" statistic has it that Amazon claimed half of all American households are Prime subscribers. A quick Google tells me that there are more than 126 million American households so that is 63 million American Primes. The new 100 million statistic is worldwide Primes. Prime costs $100/year (a bit over $8/month) or $13 if paid monthly. As one of the many Prime customers my theory is that "instant gratification" fuels interest in Prime, where the "instant" price point equates to standard, free, 2-day shipping. My own Prime usage is about 300 orders per year although I sometimes place 2-3 separate orders at the same time so that number might be more like somewhat over 200/year. I'm satisfied and enthusiastic about being a Prime member, and also being an AMZN stockholder.

    And curious to note that AMZN's lackluster stock performance jumped on Tuesday (not Wednesday), which I guess means either the story leaked or maybe investors became more optimistic simply because Trump hasn't stomped on AMZN in recent days.

    Tuesday started trading at 1463 and showed slow but steady growth throughout the day, closing about 1503. Wednesday opened at around 1515 and somewhat erratic behavior, closing at about 1528. After hours trading was brisk and led to this morning's opening at over 1,546. That's 83 points in just two days! It will be an interesting stock to watch today. Amazon's all time high (mid March) was 1,617 so at this rate, and if Trump doesn't start blathering again (that's a pretty big "if"), AMZN could easily reach a new high next week. Of course that's a lot of unsupportable assumptions.

    I'm sad that I sold a significant part of my AMZN holdings (sold 2/3) but still have enough to benefit from the uptrend. I sold when Trump's misinformed attacks retaliating at Jeff Bezos for Bezos' Washington Post negative articles criticizing Trump, so Trump attacked Amazon with many unfounded accusations and caused huge losses in Amazon's stock. I realized two things then: (1) I was taking way too much risk with so much of my net worth invested in one stock, and (2) things like Trump's blathering can cause me personally significant monetary loss. I had no choice but to cut my risks. I won't be surprised at all if Trump resumes his anti-Amazon tirade.

    As I close this article about 30 minutes after market open AMZN is already up 30 points indicating performance that is not inconsistent with my optimistic speculation that the stock may reach and surpass its previous high next week. That presumes Trump won't resume his obnoxious attacks, and even I am not so optimistic to presume that won't happen. Trump definitely hates Bezos' WaPo and it's likely his tirades will resume unless the Post lays off criticism of Trump. This is all very iffy.
  2. Susan Addams

    Susan Addams Unregistered User

    Just to end the day, Amazon closed up $29.07 which means if you owned 100 shares you just earned $2,907 in unrealized gains. Sadly, I had to bail on most of my holdings and own nowhere near that much, but I did get a tidy hit in my portfolio today.

    Actually I bailed before Trumpism caused AMZN to hit the skids and took a $10K profit.

    I'd buy my shares back except I know this Trump/Bezos feud isn't over and I'm sure loose cannon Trump will roll around the deck again. Perhaps I'll buy a few more shares next time Trump hits his Tweeter against Bezos.

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