NEW YORK (TheStreet) -- Amazon.com (AMZN) - Get Report needs a plan to survive "peak prime," or having a market in the U.S. that is oversaturated with Prime members, Bloomberg Gadfly columnist Shelly Banjo said on BloombergTV's "Bloomberg Markets: America" on Friday afternoon.
Out of 200 million eligible people in the U.S. who can sign up for the $99 per-year membership service, about 30% to 46% have done so thus far depending on how you look at it, she noted. "Is there a limit?" she asked.
Eventually Amazon.com will need to switch its focus from trying to sign up more members to trying to get more money out of its current memebrs, Banjo predicted. It will need to add more services, such as more video content or offer more products for Prime members to buy.
Amazon.com is also increasingly pushing its Prime services into the international markets, such as in Inida, China, London and the rest of the U.K.
Recently, Amazon.com CEO Jeff Bezos said that his company was "customer obssesed" rather than "competitor obsessed," which means that he's going to try to figure out how to get customers to go to his website for everything from Q-tips to bananas, she said.
However, this also means Bezos is willing to sacrifice a miss on earnings in pursuit of a longer term goal and investors don't know how to react, Banjo noted. Investors know that Amazon.com can make a profit, but they also know that Bezos has warned that it won't make a profit every quarter.
Shares of Amazon.com were lower in late-afternoon trading on Friday.
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Separately, TheStreet Ratings objectively rated this stock according to its "risk-adjusted" total return prospect over a 12-month investment horizon. Not based on the news in any given day, the rating may differ from Jim Cramer's view or that of this articles's author.
TheStreet Ratings team rates Amazon.com as a Buy with a ratings score of B-. COM INC (AMZN) a BUY. This is driven by multiple strengths, which the team believes should have a greater impact than any weaknesses, and should give investors a better performance opportunity than most stocks the team covers.
You can view the full analysis from the report here: AMZN