(Reuters) - Amazon.com Inc’s (AMZN.O) 20 percent hike in the cost of Prime membership should deliver more than $1 billion in extra revenue this year and cover any “rational” hike in United States Postal Service delivery fees, Wall Street analysts said on Friday.

FILE PHOTO: Amazon.com's logo is seen at Amazon Japan's office building in Tokyo, Japan, August 8, 2016. REUTERS/Kim Kyung-Hoon/File Photo

President Donald Trump has been laying into the Seattle-based online shopping firm in recent weeks for what he says is a deal with publicly-owned USPS which effectively lumps much of the cost of thousands of daily deliveries onto U.S. taxpayers.

Trump has said that if USPS raised parcel rates, Amazon would face $2.6 billion in extra cost, although equity analysts who follow billionaire Jeff Bezos’ company estimate a much lower number and say the deal may actually be keeping USPS afloat.

Several said that Thursday’s move by the company to raise Prime fees to $119 a year from $99 starting June 16 would not faze many of Prime’s estimated 60-65 million U.S. members.

“The incremental $20 membership fee could result in an incremental $1.2 billion to $1.3 billion of revenue which should more than offset any rational USPS price increase,” Deutsche Bank analyst Lloyd Walmsley said.

Shares of the company were up 7.4 percent to a record high of $1630 in premarket trading on Friday as investors lauded another blockbuster quarter that delivered profits of $1.6 billion and revenue of $51 billion.

“Amazon delivered a humongous quarter, with faster growth and higher profitability than Street projections and followed up with a one-two punch by announcing it was raising annual Prime membership fee,” Deutsche Bank Lloyd Walmsley said.

The 20 percent hike was the second time Amazon had

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