CNBC’s Jim Cramer is convinced that the move by Amazon to increase its Prime membership price is a sign of strength that should attract investors. The “Mad Money” host said on Friday that the price hike, which seems to bother no one, is the clearest sign that the stock is a buy. Under normal circumstances when a company increases the cost of its products or services it’s a point of concern to investors. For the case of Amazon it’s different because the price change is not going to affect its business in any significant way.
Amazon increased the price of Prime membership from $10.99 to $12.99, an 18 percent increment. According to Cramer, this is like a tax on people who prefer to pay monthly since the annual membership rate will remain at $99 while those who use the monthly plan will end up paying $156 a year.