[Reuters] – As an Amazon Prime customer since December 2012, Michelle Huffman of Milwaukee has gladly paid the annual $79 fee for the perk of free two-day shipping on items ranging from tea and cookbooks to DVDs and Nestle Smarties (milk chocolate buttons imported from Germany). But if Amazon.com Inc raises its annual Prime rates by between $20 and $40, as the e-commerce giant hinted it might during a quarterly earnings conference call in January, Huffman will rethink her decision. “At that price, I honestly think it will be cheaper to buy my quinoa and tea cups at stores – even if they cost more,” says Huffman, 27, a web producer. Amazon spokeswoman Julie Law confirmed a price increase is being considered, but declined to elaborate on what form it might take.
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Amazon.com Inc. (AMZN), with a current market cap of $166.88B, opened this morning at $359.86.
Looking at today’s trading action, the company’s one day range from $357.83 to $364.75 and has traded between $245.75 and $408.06 over the past 12 months.
AMZN shares are currently priced at 187.60x this year’s forecasted earnings, which makes them relatively expensive compared to the industry’s 15.87x earnings multiple.
In a review of the consensus earnings estimate this quarter, 34 sell-side analysts are looking at $0.23 per share, which would be $0.05 better than the year-ago quarter and a $0.31 sequential decrease. Investors should also note that the full-year EPS estimate of $1.91 is a $1.32 improvement when compared to the previous year’s annual results.
The quarterly earnings estimate is based on a consensus revenue forecast of the current quarter of $19.42 Billion. If realized, that would be a 20.85% increase over the year-ago quarter.
Recently, UBS downgraded AMZN from Buy to Neutral (Feb 12, 2014). Previously, Standpoint Research Initiated AMZN at to Sell.
The average price target for AMZN shares by the analysts covering the stock is $433.05, which is 20.34% above where the stock opened this morning.
Amazon.com Inc (NASDAQ:AMZN), operates as an online retailer in North America and internationally. The company operates in two segments, North America and International. It operates retail Websites, such as amazon.com and amazon.ca, which include merchandise and content purchased for resale from vendors and those offered by third-party sellers.
Tag Helper ~ Stock Code: AMZN | Common Company name: Amazon | Full Company name: Amazon.com Inc (NASDAQ:AMZN) .