Amazon falls on report U.S. Prime sign-ups are slowing down

Published 02/09/2025, 11:54

Investing.com -- Amazon shares slipped 1.2% in premarket trading on Tuesday after a Reuters report said U.S. sign-ups for its Prime membership program slowed during this year’s expanded Prime Day promotion.

According to Reuters, Amazon secured 5.4 million new Prime members in the U.S. during the three-week lead-up and the four-day sales event from July 8 to July 11. 

That was around 116,000 fewer than a year earlier and about 106,000 below Amazon’s internal target, representing roughly a 2% decline in both measures.

The data, reportedly reviewed by Reuters but not made public by Amazon, showed a mixed picture. 

While the company exceeded its goal during the four-day Prime Day event itself, with 1.6 million new sign-ups, the run-up period lagged significantly. 

In the three weeks before the sale, U.S. Prime memberships are said to have totaled 3.9 million, a 5% shortfall compared with 2024.

Amazon told Reuters that Prime membership continues to grow strongly in the U.S. and abroad, but did not provide specific numbers. Chief Executive Andy Jassy has previously called Prime Day the company’s “biggest ever,” citing record sales and customer savings.

Analysts say Prime is strategically crucial because members spend more and are less likely to switch to rivals. 

Amazon faces intensifying competition from Walmart’s subscription service, while also navigating the impact of U.S. tariffs on consumer spending.

 

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