Amazon Prime Subscriptions Slow, AMZN Stock Dips

Amazon shares (AMZN) fell 1.9% on Tuesday after reports indicated a slowdown in new Prime subscriptions. The e-commerce giant added 5.4 million U.S. Prime members during its Prime Week event, but this figure fell short by 116,000 compared to the previous year and missed internal targets by 106,000—a 2% decline. While Prime Day itself saw 1.6 million sign-ups, the three-week lead-up lagged with 3.9 million additions, a 5% drop from 2024.

Competition from Walmart’s subscription service and broader macroeconomic pressures, including U.S. tariffs, are weighing on Amazon’s growth. The inverse relationship between AMZN and WMT suggests any gains for Walmart could further pressure Amazon’s stock. Prime’s revenue significance makes the slowdown a critical concern for investors.