29 April, 2016, USA: The investors of Amazon are riding high on spirits as the company’s shares rose to as much as 12 per cent in after-hours trading. This is marked as Amazon’s fourth-straight profitable quarter, company’s stock performed way better than the expectations of trade analysts and market gurus.
This performance clearly indicates that company still has the upper hand on the global online marketplace segment. Over the years, it has managed to add more prime members and has allured more new customers with its high quality services and products. Amazon’s recently released service called ‘Amazon Echo Smart Home Hub’ has been gaining lot of popularity among its customers which has also helped the company to scale up its business.
As Amazon continues to add services for its Prime members, including streaming video, streaming music and same-day delivery, customers are becoming increasingly loyal and willing to buy more from Amazon. However, another factor that helped the company to perform better is that currently it doesn’t have any strong competitors who can challenge Amazon. Companies such as Walmart, Macy’s, Sears and other are already on the wrapping up stage in fact, most of them have closed many of their stores and lay off many employees as they faces a strong lull in their business.
Amazon said it would be investing more in original programming. It hopes the new US $8.99 monthly subscription plan will appeal to lower income customers who may not want to pay for a full year at once.