Amazon Earnings Slip; Prime Price Hike?


Published 01/31 2014 10:37AM

Updated 01/31 2014 10:38AM

Amazon's latest earnings failed to impress investors and now the online retail giant may be raising the price of its popular "Prime" service.

Shares in fell eight percent overnight in after-hours trading.

The company's fourth-quarter 2013 profits grew to 239 million dollars, and revenues were up 26 percent.

But that fell short of Wall Street predictions.

In an investor conference call, executives said they are considering a higher price for "Amazon Prime"; a subscription service that includes free shipping for most purchases, and streaming video similar to netflix.

"Prime" costs about 80 bucks a year but Amazon says higher fuel and shipping costs could lead to a hike of 20 to 40 dollars per year.

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