Amazon announced on Thursday that it will raise the annual price of Prime subscriptions to $119, a 20% increase.
The e-commerce giant, which reported first-quarter earnings that more than doubled, currently charges U.S. customers $99 for an annual subscription. Prime, which offers unlimited two-day shipping and video streaming, cost $75 when it launched in 2005.
Amazon founder and CEO Jeff Bezos recently revealed for the first time that Amazon has more than 100 million paid Prime members. The price increase, effective May 11 for new members, could drive additional revenue growth for the company.
Seattle-based Amazon earned net income of $1.6 billion during the first quarter, up from $724 million in the same period a year earlier. On a per-share basis, earnings jumped to $3.27 a share, far exceeding Wall Street’s estimate for $1.27 a share.
Revenue surged 43% to $51 billion, beating the consensus estimate of $49.87 billion.
Shares of Amazon rallied nearly 7% in after-hours trading, putting the stock above its all-time intraday high of $1,617. President Donald Trump’s criticism of the company, particularly over sales taxes and Amazon’s relationship with the U.S. Postal Service, had sent the stock 13% lower in recent weeks.
Bezos said Amazon Web Services (AWS), the company’s cloud-computing business, has seen “remarkable acceleration” in its growth for two consecutive quarters. During the first three months of 2018, AWS added new enterprise customers including GoDaddy, Shutterfly and NextGen Healthcare.