Amazon (AMZN:US) shares are trying to stage a recovery on Thursday after they dropped more than 4% on Wednesday on the Wall Street Journal reporting that the company mulls launching an ad-tier for Prime Video streaming services.

Amazon is reportedly considering an ad-tier in a bid to boost growth for its entertainment-related revenue. The discussions have taken place after Netflix’s (NFLX:US) share price surged in recent months on the early success of the streaming giant’s ad-tier strategy.

The e-commerce giant is experiencing a deeper-than-expected contraction in AWS sales, prompting the company to cut tens of thousands of staff. For the first quarter, Amazon reported ad revenue of $9.5 billion

Prime Video is available for $8.99 or $14.99 if users pay for Amazon’s Prime membership.

Wall Street analysts weighed in positively on the rumored plans of Amazon’s senior leadership.

"Amazon’s user data, existing relationships with retail advertisers, and extensive ad sales teams provide a competitive advantage for monetizing ad-streaming. Also, tiering may enable Amazon to raise fees on ad-free Prime tiers, which would follow recent fee increases for various Prime and 3P services," Bank of America analysts said.

Despite Wednesday’s selloff, Amazon shares still trade about 45% higher year-to-date as investors increase their exposure to mega-cap tech stocks.

Several Congress members were buying Amazon shares this year, including Daniel Goldman, Ro Khanna, Morgan McGarvey, and Michael McCaul.

Rep. McCaul was actively buying Amazon stock in late 2022 and the beginning of 2023 while shares were trading in the $85 to $105 range.

The stock was seen trading above $120 apiece on Thursday.