Amazon’s US sales to match Walmart’s within three years, JP Morgan predicts

In its first comments on the exact size of its membership program, Amazon recently revealed that it boasts over 100 million as the e-commerce giant explores areas outside its traditional consumer goods environment. J.P. Morgan expects this number to hit roughly 140 million in 2019.

The company recently announced that it would raise prices on its premium membership to $119 from $99, a move Wall Street applauded as beneficial to its revenue base.

“Prime delivers such massive scale and features that we believe it would be very difficult for any company to replicate,” Horvers added. “The company offers same-day free shipping on more than a million items for Prime members when ordered before noon in 8,000 cities and towns. Prime Now goes a step further and guarantees two-hour delivery on tens of thousands of items in 32 U.S. cities.”

While the price increases pushing Amazon’s stock even higher, Horvers noted that Amazon is still accruing market share, predicting that it will jump to 50 percent of e-commerce sales from 41 percent of sales over the next few years. J.P. Morgan has an overweight rating on shares of Amazon.

Shares of Amazon are up 37 percent so far this year, well ahead of the S&P 500’s 2.1 percent gain over the same period; the stock is up 66 percent over the last 12 months.