Amazon Prime (NASDAQ:AMZN) announced that the number of Prime subscribers will more than double by 2029 as the company continues to add perks to the exclusive subscription service that is slated to fuel its growth.
The coming decade will be a good one for the e-commerce retailer, which recently reached a valuation of $1 trillion. Citi analysts estimate that the number of Amazon Prime subscribers is slated to reach at least 275 million by 2029.
The firm also upgraded its price target on the stock, adding that Wall Street investors have not given the company an adequate valuation based on the results it’s expected to produce over the coming decade. Citi added that it could see the company tallying up more than $500 billion in Prime-related gross sales on an annual basis within a decade.
“We remain positive on Amazon shares and view Amazon’s large and growing global Prime member base as not only a source of recurring revenue but a key reason why brands and third-party sellers are increasingly relying on Amazon’s marketplace,” Citi analyst Mark May wrote in a note published Sunday.
May added that the number of Prime subscribers is growing at about 35% to 40% every year. He said that roughly 80% of U.S. households will have the service by 2029.
AMZN stock was down about 0.7% on Monday.
