NEW YORK (TheStreet) -- After selling my Amazon.com
(AMZN) shares for $230 a few years ago, I finally broke down and bought some new ones -- for $370.
I decided to splurge after Amazon's "disappointing" quarter, profits of $239 million, 51 cents a share, on revenue of $25.59 billion. The numbers trailed estimates of earnings of 66 cents a share and revenue of $26.06 billion.
But I took a look at Amazon's PDF file concerning the numbers.
WATCH: Jim Cramer on Amazon: No Reason to Panic, Buyers Will Come Back
Cash flow and the company's cash position were both up about $500 million from a year earlier. Where Amazon seems to have come up short is in media sales growth -- U.S. media sales rose only $600 million year-over-year, and international media sales were up just $100 million, or 3%.
These are problems, and analysts who turned negative on the stock focused on those problems.
But these are problems that are easy to fix with price adjustments.
Amazon got into streaming media through Prime, a $79-a-year service that also includes discounts on shipping of Amazon products. Most Amazon media is not included in Prime, although movies can be rented over several days for just a few dollars, meaning they can also be watched offline.
The company talked in its conference call about raising the price of Prime by $20 to $40 a year. It could also separate streaming from shipping. Netflix
, at $8 a month, is a $96 a year product.
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