Amazon shares rise on music service speculation

FT sources say the ecommerce giant is close to unveiling a new streaming service

Mid-morning trade boosted by news on Monday

Amazon's expected foray into the digital music arena has led to a surge in share prices in mid-morning trading on Monday.

Nasdaq 100

20,896.67

12:15 14/11/24

-0.66%

-139.49

According to sources from the Financial Times, the ecommerce giant is set to unveil its music streaming program to combat Apple, Spotify and Alphabet's own apps.

The reports claim that the Seattle-based company plans to launch its streaming service in September, with a $9.99 price tag.

The internet shopping firm has gone from strength to strength this year on the back of its impressive earnings results. The second annual Prime Day was a big winner for Amazon and now they will look to compete with the likes of Apple Music in the near future.

Amazon reported revenue of $30.4bn for the second quarter, up 31% from a year earlier. It recently took over oil corportation ExxonMobil as the fourth largest company in the US by market capitalisation.