The Clap Amazon (NASDAQ: AMZN) announced it would split its stock 20-to-1, as well as a share buyback program up to $10 billion.
Do the splits AMZN goes for $2,785/share as of yesterday’s market close. The 20-to-1 stock split would see its stock price drop to around $140, making it more accessible for retail investors. The move is pending shareholder approval & wouldn’t take effect until June of 2022.
Stock splits haven’t really been a thing in recent years, but more recent stock splits by Apple (NASDAQ: AAPL) & Alphabet (NASDAQ: GOOGL) revived the practice in order to make their shares more attractive to retail investors.
Amazon said the split would serve two things: allowing employees “more flexibility in how they manage their equity”, & making the stock more accessible to retail investors.
$10 billion share-buyback The buyback, according to an analyst at DA Davidson investment bank, shows investors that the company has a lot of cash lying around with no major investment plans for it.
AMZN shares soared as much as 11% in extended trading upon both news.