|
The
company's 20-for-1 stock split is its first since 1999 and is in
addition to a $10 billion share buyback. It also comes after
Alphabet Inc announced a similar split earlier this year.
"Amazon's proposed stock split speaks volumes about how the
world of trading has changed," said Sophie Lund-Yates, equity
analyst at Hargreaves Lansdown.
"While such a move doesn't mean too much for existing
shareholders, it makes individual shares more accessible to
everyday investors."
Amazon's stock ticker was trending on investor focused
social-media site stocktwits.com and was among the most
discussed on Reddit's wallstreetbets, according to sentiment
aggregator Swaggystocks.
Shares of Apple Inc and Tesla Inc rallied sharply after their
stock splits in 2020, with Tesla eventually joining the S&P 500
by the end of the year.
Amazon's shares closed near two-year lows at $2,785.58 after
soaring over the past two years on booming demand for online
shopping during COVID-19 lockdowns.
The company went public in 1997 at an IPO price of $18, or $1.50
adjusted for the stock splits that occurred in 1998 and 1999.
The latest stock split will take effect on June 6.
(Reporting by Nivedita Balu and Medha Singh in Bengaluru;
Additional reporting by Tiyashi Datta in Bengaluru and Jason Xue
in Shanghai; Editing by Anil D'Silva)
[© 2022 Thomson Reuters. All rights
reserved.]
This material may not be published,
broadcast, rewritten or redistributed.
Thompson Reuters is solely responsible for this content.
|
|
