am an Amazon Prime member and I never cease to be amazed at the value that I get for the $99 that I pay as a membership fee. In addition to free shipping, I get access to Amazon Media and Kindle books. In October 2017, I was joined by 85 million other Prime members who also felt as I did, and the open question is whether Amazon Prime is a loss leader for Amazon, intended to create benefits elsewhere or a value creator for Amazon. I use the user-value model that I created for Uber to value Amazon members and conclude that Amazon Prime creates $62.2 billion in value for the company. I confess I make lots of assumptions along the way, but you are welcome to disagree. Spreadsheet: http://www.stern.nyu.edu/~adamodar/pc… Blog Post:
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Aswath Damodaran
Please note that I do not read comments posted here, nor respond to messages here. I don't have the time. If you want my attention, you must seek it directly at my blog. Aswath Damodaran is the Kerschner Family Chair Professor of Finance at the Stern School of Business at New York University. He teaches the corporate finance and equity valuation courses in the MBA program. He received his MBA and Ph.D from the University of California at Los Angeles. His research interests lie in valuation, portfolio management and applied corporate finance. He has written three books on equity valuation…
Please note that I do not read comments posted here, nor respond to messages here. I don't have the time. If you want my attention, you must seek it directly at my blog. Aswath Damodaran is the Kerschner Family Chair Professor of Finance at the Stern School of Business at New York University. He teaches the corporate finance and equity valuation courses in the MBA program. He received his MBA and Ph.D from the University of California at Los Angeles. His research interests lie in valuation, portfolio management and applied corporate finance. He has written three books on equity valuation…
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