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Tae Kim

Amazon Prime Increase Won’t Solve E-Commerce Struggles

The company reassured skittish investors with a not-terrible quarter, but there were signs the retail operation remains under pressure.

Slowing growth.

Slowing growth.

Photographer:  Andrew Harrer/Bloomberg Inc.’s investors were bracing for the worst a day after Meta Platforms Inc.’s dreary earnings report sparked a historic stock plunge and spread worries that tech stalwarts were losing their mojo. Amazon’s shares tumbled nearly 8% in regular trading Thursday ahead of its own earnings news. 

But Amazon’s so-so results and the announcement of a price increase on Amazon Prime memberships was enough to placate investors, who sent the retailer’s stock price up 14% in after-hours trading.