Amazon CEO Jeff Bezos sent a letter to shareholders on Wednesday stating that the company currently has 100 million paid Prime subscribers. This is the first time that Amazon mentions how many Prime members it has, and it's actually a much higher number than many had expected. Many analysts expect around 70 to 80 million. This news caused the stock to jump two percent by the hour when the news broke yesterday.
Also mentioned in this letter to shareholders about its number of Prime subscribers, Amazon said that in 2017 it added more Prime members than in every year before. That's a pretty big deal, as it's still able to increase the number of prime members. And remember, these are paid prime members, so these are not those who use free trials. Amazon has worked with Amazon Music Unlimited, Amazon Prime Video, and more in recent years to expand Amazon Prime's capabilities. To make it a bit more attractive to the users. Amazon has also broken the annual fee and now offers it as a monthly fee. Although it is better to buy Prime for a whole year,
The Letter to Shareholders also sets the benchmark for the company, which Bezos does quite often. It enables the company to push its employees further and keep the company at the top. Bezos has published a shareholder letter every year since 1997 – when Amazon went public. Most companies write a letter to shareholders each year to tell shareholders what they expect next year and where the company will go. It is not a requirement of the SEC, but it helps shareholders to take an interest in the stock and even increase the stock price, which is very attractive to investors as they are able to earn even more money.