In an interview with Bloomberg TV, Amazon CEO Jeff Bezos said he expects Amazon Prime to become a $1 billion-a-year business by 2020.
The company expects to see annual sales of $1 trillion within the next five years, Bezos said.
The Amazon Prime program has been a hit, Bezos has said, but Amazon’s margins haven’t been as good as many analysts had expected.
Amazon’s stock has rallied nearly 20 percent since Bezos’ comments on Friday.
It rose by more than 2 percent in after-hours trading on Monday, with shares trading at $139.70 a share.
Amazon is the second-largest online retailer by revenue, after Walmart, and has a market capitalization of about $65 billion.
It has been investing in its own technology and expanding its services, including a subscription service called Prime Now.
Amazon has been trying to win back its loyal customer base in an era when the retail sector is losing customers to other players.
While Amazon is still trying to figure out how to appeal to its core customers, Bezos believes Prime is a way for Amazon to become more accessible and reach more people.