Amazon announces 20-for-1 stock split!
Amazon announced its first stock split since the dot-com boom,
telling investors on that they’ll receive 20 shares for each share they currently own.
- The stock soared 6% in extended trading.
The company also said the board authorized it to buy back up to $10 billion worth of shares.
Stock splits do not fundamentally change anything about the company, other than possibly making the shares accessible to a larger number of investors because of their cheaper price.
*Reuters tweet on Amazon stock split
Amazon announces 20-for-1 stock split, $10 bln share buyback https://t.co/HTIfYfRBr6 pic.twitter.com/bUKcmdM9Ue
— Reuters (@Reuters) March 10, 2022
Hypothetically, if the stock split happened today, the cost of each share would go from $2,798.88 to $144,22 and each existing holder would get 19 additional shares for every one they own.
- Amazon is the latest highly valued tech company to pull down the price of each share through a split.
Google parent Alphabet announced a 20-for-one split in February. In mid-2020, Apple disclosed plans for a four-for-one split
“This split would give our employees more flexibility in how they manage their equity in Amazon and make the share price more accessible for people looking to invest in the company,” an Amazon spokesperson said in a statement.
Historically, Amazon has relied on generous stock awards to attract talent, but the shares underperformed in 2021, and employees have pressured the company to make changes
