Amazon’s Boundless Spending Tested as Sales Growth Slows
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Amazon.com Inc.’s willingness to gain customer loyalty by shouldering the costs of nationwide shipping and access to online movies has its limitations.
The stock fell 11 percent after a 20 percent jump in operating costs led Amazon to miss analysts’ fourth-quarter profit estimates yesterday. The company is now considering raising the price of its $79-a-year Prime membership for the first time. That service, which includes two-day shipping and endless video streaming, may increase by $20 to $40 a year in the U.S., the company said.