You choose, we deliver
If you are interested in this story, you might be interested in others from The Journal Gazette. Go to www.journalgazette.net/newsletter and pick the subjects you care most about. We'll deliver your customized daily news report at 3 a.m. Fort Wayne time, right to your email.

Business

  • Review: Larger iPhones eliminate reason to switch
     NEW YORK – It’s easy to dismiss Apple’s new iPhones as merely catching up to Android.
  • Alibaba poised to surge on the NYSE
      NEW YORK – Chinese e-commerce powerhouse Alibaba will say “open sesame” to the New York Stock Exchange on Friday, as its shares begin trading in a highly anticipated debut that could raise up to $25 billion.
  • 56 million at risk in data theft
    NEW YORK – Home Depot said 56 million debit and credit cards are estimated to have been breached in a data theft between April and September at its stores in the U.S. and Canada.
Advertisement
Also
Amazon to hire 2,500 workers across US
SEATTLE – Amazon said it is hiring more than 2,500 full-time workers at its order fulfillment centers throughout the U.S.
Amazon.com Inc. announced Wednesday that the jobs are available in Chester, Va., and Petersburg, Va.; Coffeyville, Kan.; Columbia, S.C.; Dupont, Wash.; and Murfreesboro, Tenn.
The world’s largest online retailer said that last year it hired more than 20,000 people at its fulfillment centers, with more than half starting out as seasonal workers.
The Seattle-based company had 117,300 full-time and part-time employees at the end of 2013, according to a regulatory filing.

Amazon falls as analyst cuts rating, price target

– Shares of Amazon declined Wednesday as financial services company UBS removed its “buy” recommendation, saying that the online retailer may have a difficult time raising the price of its Prime subscription service.

Prime membership was a huge hit leading up the holidays, so much so that it was one factor contributing to snarled traffic at the nation’s largest shipping companies.

A week before the Christmas holiday, more than a million people signed up for the service, which provides free two-day shipping on many items bought at Amazon.com – as well as free movie streaming and e-books – for $79 a year.

Amazon.com, the world’s biggest online retailer, hasn’t raised the price for membership in the nine years since its launch, even though shipping costs have increased and it added the e-books and movies recently.

As dominating as the company has become in retail, it has been criticized by some investors for what they perceive as a focus on growth at the expense of profit.

When it posted quarterly results two weeks ago that fell short of Wall Street expectations, the company said it was considering a $20 to $40 price increase for Prime.

UBS analyst Eric Sheridan, along with Consumer Intelligence Research Partners, conducted a survey that found the vast majority of Amazon Prime customers would likely renew their membership at the current price. But a markedly lower percentage of customers said they would renew if the fee was raised by $20 or $40.

If Amazon does raise the fee, Sheridan believes it may need to tack on more privileges, such as additional media content. And the company would have to get the message out about the value of Prime, which could drive up marketing expenses, he said.

Sheridan cut Amazon.com Inc. to “neutral” and reduced his price target to $375 from $450.

A representative for Amazon did not immediately respond to an email seeking comment.

Amazon’s stock dropped $12.54 on Nasdaq, or almost 3.5 percent, to $349.25 at close of trading. In the past year, shares are up 41 percent.

Advertisement