An Amazon fulfillment center. Photo: Paul Hennessy/NurPhoto via Getty Images

Amazon is beefing up its Prime membership offering, moving from free 2-day shipping to 1-day.

Why it matters: Retailers are already racing to come close to Amazon's shipping prices and speeds. This will squeeze competition even further.

Context: Amazon has over 100 million Prime members in just the U.S., and there are currently about 100 million products on its site that are eligible for free 2-day shipping.

Details: CFO Brian Olsavsky told analysts the company expects the offering to cost $800 million in the second quarter. He said he expects the move to make Prime even "stickier." Cutting delivery times in half "will open up a lot of potential purchases," Olsavsky said.

The big picture: Amazon reported $7.09 in earnings per share for the first quarter of 2019, plowing through analysts' expectations of $4.72.

  • The e-commerce behemoth saw $59.7 billion in sales this quarter — a 17% jump from Q1 2018.
  • Revenue for its cloud business, AWS, was $7.7 billion. Both revenue figures were in line with analysts expectations.

What's happening:

  • Amazon saw fatter profit margins this quarter, leading to stronger than expected earnings per share. The company reported a record $3.6 billion in net income — more than double last year's $1.6 billion.
  • AWS profits were $2.2 billion, up about 57% from $1.4 billion last year.
  • Amazon also shrunk its losses internationally and doubled operating profits in North America, per the earnings release.

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Photo illustration: Aïda Amer/Axios. Photo: Jim Watson/AFP via Getty Images

President Trump said twice Monday that the U.S. Treasury would need to get a portion of the sale price of TikTok, as a condition of regulatory approval.

Why it matters: This is akin to extortion — the sort of thing you'd expect to hear on a wiretap, not from the White House in front of reporters.

Ford names James Farley as new CEO amid ongoing turnaround effort

James Hackett, left, is retiring as Ford CEO. Jim Farley, right, takes over Oct. 1. Photo: Ford

Ford announced Tuesday that James Farley will take over as its next CEO, replacing James Hackett, 65, who is retiring after three years in the job.

Why it matters: It leaves Farley to complete the company's ongoing turnaround effort. The transition will be that much harder as the industry tries to navigate the coronavirus-induced economic slowdown which shuttered Ford plants for two months on the eve of some of its most important vehicle launches.

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Watch the full "Axios on HBO" interview with President Trump

In this episode of “Axios on HBO”, President Trump discusses his handling of the coronavirus pandemic, the upcoming election and much more with National Political Correspondent Jonathan Swan.

The interview was filmed on Tuesday, July 28 and aired Monday, Aug. 3 on HBO.