Amazon.com Inc’s (NASDAQ: AMZN) shares rose 6.3% following the announcement of a huge stock split. This makes Amazon.com Inc’s equity more attractive for investors after a 25-year-old surge in its value.
This 20-for-1 stock split by the company is its first since 1999. It also includes a $10 billion share purchase back. This follows a similar split announced earlier this year by Alphabet Inc (GOOGL.O).
“Amazon’s proposed stock splitting speaks volumes about the changing world of trading,” stated Sophie Lund-Yates (equity analyst at Hargreaves Lanzdown).
“While this move isn’t too significant for existing shareholders it makes individual shares more available to everyday investors.”
According to Swaggystocks sentiment aggregator Swaggystocks, Amazon’s stock ticker was trending in investor-focused social media site stocktwits.com. It was also among the most talked about on Reddit’s Wallstreetbets.
After their stock splits in 2020 and Tesla Inc, Apple Inc, and Tesla Inc both saw shares rise sharply. Tesla joined the S&P 500 at the end of 2019.
Amazon shares closed at $2,785.58 – close to their two-year lows. The stock had soared over the past two years due to booming online shopping demand during COVID-19 lockdowns.
The company went public at $18 per share or $1.50 after accounting for stock splits in 1998 and 1999.
On June 6, the latest stock split will be in effect
