The Prime Numbers

Amazon Prime is booming, with like 180 million people in the US having a membership. That's a ton of folks who love getting their stuff fast and free. Think of it like a club, but instead of weird handshakes, you get super speedy deliveries and access to tons of cool shows and movies. All for a yearly fee (or a monthly splurge, if that's your jam).

For a price (think monthly splurge or annual fee, depending on your style), you get free shipping, exclusive deals, and access to Prime Video. It's pretty sweet, especially if you're constantly ordering things online (no judgment, we've all been there with the cat socks and fancy pickles).

The Stock Market Tango

Amazon's been doing great lately, kind of like it's dancing on top of the charts. The pandemic definitely helped, with everyone shopping online like crazy. But here's the kicker: Prime memberships actually slowed down a bit during that time. Some folks thought Amazon might have hit a wall, like a climber stuck on a tough ledge. But here's the twist: Prime membership growth flattened out during the pandemic. Some folks thought Amazon had hit a plateau, like a climber stuck on a tricky ledge.

But guess what? The recent data shows that 75% of US shoppers still have Prime memberships. That's a clear sign that Amazon is still gaining new subscribers. These folks believe their Amazon addiction justifies the investment in Prime. It's like saying, "Yeah, I order cat socks and artisanal pickles every week, but at least I get free shipping!"¹

Investing in the Amazon Jungle

Here's the lowdown: They're not just an online store anymore. They're a tech giant with their hands in everything, from cloud computing to streaming to even getting groceries delivered. Pretty wild, right? Here's why you might want to consider grabbing some AMZN stock (that's their ticker symbol):

1. E-Commerce Dominance: Amazon's e-commerce game is stronger than a double-shot espresso. People shop there for everything from dog food to inflatable unicorn floats. As long as humans crave convenience (and unicorns), Amazon's got a seat at the table.

2. Cloud Magic: Amazon Web Services (AWS) is like the wizard behind the curtain. It powers half the internet, including Netflix, NASA, and your neighbor's cat blog. AWS revenue keeps climbing, like a mountain goat scaling Everest.

3. Prime Addiction: Remember those 180 million Prime members? They're not going anywhere. Prime's sticky like caramel on a hot day. Plus, Amazon keeps adding perks, like free grocery delivery and early access to Black Friday deals.

4. Innovation Galore: Jeff Bezos, the Amazon founder, loves crazy ideas. Think drones delivering packages, cashier-less stores, and Alexa reading bedtime stories. If you're into futuristic stuff, Amazon's your playground.

5. Risk Alert: Investing can be risky, and Amazon has competition to keep an eye on (Walmart and Alibaba, anyone?). Plus, things can change fast in the world of business. So, don't expect overnight success – investing is a marathon, not a sprint.

Amazon’s disappointing earnings reports dragged shares of Wayfair, Shopify, and eBay lower Tuesday morning. Retail e-commerce stocks were tumbling Friday as Amazon’s weaker-than-expected first-quarter results signaled a slowdown in the tech giant’s online store business.

Wayfair, Shopify and eBay stocks have been dragged lower by Amazon’s sales disappointment. The e-commerce giant reported revenue of $52.9 billion in its first quarterly report, missing estimates of $53.72 billion. Investors had expected more from Amazon after it announced that it would invest billions into creating its own branded fashion lines and add 1 million U.S. square feet to its fulfillment centers, even though the company continues to grow revenue at an impressive rate of 35%.

Amazon Expectations

Amazon’s most recent earnings report shows that Amazon is still a major player in the ecommerce market. The company’s online sales fell below Wall Street’s consensus of $51.9 billion. The company is projecting total net sales of $116 billion to $121 billion for Q2, largely in-line with expectations.

Shopify Stock

Shopify Stock and Wayfair Stock are down more than 10% in early trading Friday after Amazon.com's sales growth fell short of expectations. Shopify stock is down 6.28% during the pre-market session, which is the worst performer on the index this morning. Revenue for the second quarter was $957 million, up 42% year-over-year and above the Thomson Reuters consensus estimate of $940 million. Ecommerce revenue grew 45%, while Shopify Plus customers increased to over 18,000 from 11,100 a year earlier.

Shopify is the premier multi-channel cloud-based commerce platform for small and medium-sized businesses. With the Shopify platform, you can easily launch your own online store to sell physical products, digital products like videos and music, or services to customers around the world.