The Wall Street Journal reported that Amazon is planning an advertising-supported tier for its Prime Video streaming service and is in discussions with Warner Bros. Discovery and Paramount about offering ad-supported tiers of those streaming services through Amazon Prime Video Channels. This news caused Amazon shares to experience further declines.
Warner Bros. stock ended the day up 8.4% at $13.12 a share, following the company's announcement on Wednesday that CNN Chairman and Chief Executive Chris Licht had resigned. Its resurgence was also aided by Licht's departure. Shares of Paramount finished up 3.9%.
Amazon reached a high of $127.37 immediately after the market began and last traded at $121.23. Amazon experienced its largest one-day percentage loss on Wednesday since February 3. Stock has increased by 44.3% thus far in 2023.
"To me these are desperate moves because that's money out the door to try to keep people on Amazon's platform," Kim Forrest, chief investment officer at Bokeh Capital Partners in Pittsburgh, said regarding the report's suggestion that Amazon is adding new video providers for Prime.
The action, according to Forrest, would imply that "the Prime service isn't enough" to retain subscribers. Amazon's online sales are boosted by the addition of free shipping to Prime memberships along with access to streaming video.
Forrest advised anyone who had stopped using Prime to "buy from somewhere else" because "nobody wants to pay for shipping and pretty much everybody is offering free shipping now."
Forrest noted that since the May jobs report was released on Friday, investors have typically been more likely to purchase shares in smaller companies rather to mega-cap corporations like Amazon. This is in addition to concerns regarding the Prime programme.
The small cap Russell 2000 index concluded the day up 1.8%, while the S&P 500 declined by 0.4%. Amazon is a part of the S&P's consumer discretionary sector, which fell 0.9%.
Since early February, Amazon's fall on Wednesday was its largest one-day percentage decline.
(Source:www.usnews.com)
Warner Bros. stock ended the day up 8.4% at $13.12 a share, following the company's announcement on Wednesday that CNN Chairman and Chief Executive Chris Licht had resigned. Its resurgence was also aided by Licht's departure. Shares of Paramount finished up 3.9%.
Amazon reached a high of $127.37 immediately after the market began and last traded at $121.23. Amazon experienced its largest one-day percentage loss on Wednesday since February 3. Stock has increased by 44.3% thus far in 2023.
"To me these are desperate moves because that's money out the door to try to keep people on Amazon's platform," Kim Forrest, chief investment officer at Bokeh Capital Partners in Pittsburgh, said regarding the report's suggestion that Amazon is adding new video providers for Prime.
The action, according to Forrest, would imply that "the Prime service isn't enough" to retain subscribers. Amazon's online sales are boosted by the addition of free shipping to Prime memberships along with access to streaming video.
Forrest advised anyone who had stopped using Prime to "buy from somewhere else" because "nobody wants to pay for shipping and pretty much everybody is offering free shipping now."
Forrest noted that since the May jobs report was released on Friday, investors have typically been more likely to purchase shares in smaller companies rather to mega-cap corporations like Amazon. This is in addition to concerns regarding the Prime programme.
The small cap Russell 2000 index concluded the day up 1.8%, while the S&P 500 declined by 0.4%. Amazon is a part of the S&P's consumer discretionary sector, which fell 0.9%.
Since early February, Amazon's fall on Wednesday was its largest one-day percentage decline.
(Source:www.usnews.com)
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