One way Amazon can boost “billions” with new revenue

Subscription-based services are the dominant force in today’s consumer economy, where companies like Netflix (NFLX) and Spotify (Spot) leverage their iterative revenue models to drive growth and customer loyalty. But of all the subscription Giants, Amazon (AMZN) stands in its own league with Prime, offering everything from rapid shipping and streaming to gaming and groceries under one roof.

Now, Amazon could be on the verge of unlocking billions of new revenue through successful strategic moves in the past.

Analysts are focusing on Amazon’s key membership as a potential catalyst for “billions of dollars” of new revenue. JPMorgan, for example, points out that increasing US Prime membership costs from $139 to $159 (a $20 hike) in 2026 could add around $3 billion in annual revenue, following Amazon’s four-year cadence. This is already on top of a large subscription base. Amazon’s subscription services segment (led by Prime) won roughly $44.4 billion in 2024. Prime members receive $1,430 per JPMorgan math, and analysts expect strong hold even after a modest price rise.

Based in Seattle, Amazon is a global ecommerce and cloud leader known for its vast online marketplaces, Cloud Computing Division (AWS), digital advertising, and subscription services such as Prime. The company also develops home appliances, invests in artificial intelligence, operates physical retailers, logistics networks, and growing media and entertainment divisions.

With a market capitalization of $2.3 trillion, the e-commerce giant’s stocks trade relatively flat for most of the year. However, after hitting bottom on April 21, stocks rebounded strongly alongside the broader market, and have since rallied at over 31%.

Despite the lack of a wider market in recent months, Amazon continues to order valuation premiums compared to sector peers. The stock is currently trading at a forward price return of 35 times, more than 100% higher than the median sector of 17 times, and is a clear signal of the market’s confidence in Amazon’s long-term growth potential and dominant market positioning.

Amazon posted another strong quarter this year. The first quarter results surpassed expectations, highlighting the increased profitability of the company. Net sales rose 9% year-on-year to $155.7 billion, surpassing guidance, with all major segments contributing to growth.