Will Amazon Stock Benefit From Prime Membership Growth and Loyalty?

Amazon is demonstrating strong momentum behind its Prime ecosystem, driven by expanded media rights and accelerated delivery capabilities. The company unveiled its full 2026-27 NBA on Prime schedule under an 11-year media rights deal, including exclusive coverage of the Eastern Conference Finals and Emirates NBA Cup doubleheaders. This content push, alongside expanding original productions, reinforces member retention and subscriber growth. In its latest quarterly results, Amazon posted net sales of $200.6 billion, up 20% year-over-year excluding currency fluctuations, propelled by a 16% revenue increase in North America to $116.2 billion. Advertising revenues grew 26% to $19.8 billion, bolstered by Prime Video ad placements. Furthermore, items delivered same-day or overnight surged over 40% in the first half of the year, while paid unit growth reached 17%. Looking forward, Amazon guided third-quarter net sales between $197 billion and $202 billion. With shares up 15.4% year-to-date and a Zacks Rank #2 (Buy), analysts anticipate full-year earnings of $13.06 per share, underscoring solid retail and advertising tailwinds despite a forward P/E multiple of 23.35X.