It may be time for a post-Christmas sanity check for investors on Amazon’s surprisingly lagging stock Online Cigarettes Store USA .
While Amazon touted a “record-breaking” holiday shopping season in a post Christmas Day press release, it’s really two stats from the highlight reel that should question why Amazon’s stock (AMZN) has been stuck in neutral at all.
First, Amazon said 5 million new customers started Prime free trials or began paid memberships worldwide Newport 100s Box . Let’s assume that all 5 million of those customers end up being paid Prime members — that’s $595 million in annual run rate recurring sales assuming the service’s $119 annual fee. Not too shabby of a recurring revenue stream, which could go onto be higher as Prime members spend throughout the Amazon ecosystem. It could also help Amazon easily fund its ambitious new investments in same-day delivery and dare we day, electric autos (see recent Rivian investment).
Want to be more pessimistic on Prime’s future sales contribution? That’s fine — but even 5 million free trials Cheap Newport 100s cigarettes is likely to unleash a wave of consumer spending on Amazon’s platform in the first half of 2020. What other retailer could say that? Competitive advantage in its finest form.