Amazon Announces First Stock Split Since Dot-Com Boom
Investors Set to Receive 20 Shares for Each
Company Approves 20-1 Stock Split and $10 Billion Buyback
In a move that has sent ripples through the financial world, e-commerce giant Amazon has announced its first stock split since the dot-com boom. The company's board of directors has approved a 20-1 stock split, effective June 6, 2022. This means that each current shareholder of Amazon will receive 20 shares for every one share they own.
The stock split is accompanied by a $10 billion stock buyback program, which will allow Amazon to purchase up to $10 billion worth of its own shares in the open market. This move is seen as a positive sign by investors, as it indicates that the company believes its shares are undervalued and has confidence in its future growth prospects.
Amazon's stock has been on a steady upward trajectory in recent years, despite the challenges posed by the COVID-19 pandemic. The company has benefited from the surge in online shopping during the pandemic, and its shares have reached all-time highs in recent months.
The stock split is expected to make Amazon's shares more accessible to a wider range of investors. Currently, Amazon shares trade at around $3,000 per share, which puts them out of reach for many retail investors. After the split, the share price will be reduced to around $150 per share, making them more affordable for individual investors.
The news of the stock split has been met with enthusiasm by investors, and Amazon's stock has jumped in after-hours trading. The company's stock is expected to open higher when the market opens on Thursday morning.
Amazon's stock split is a major event that is likely to have a significant impact on the financial markets. The move is seen as a positive sign for the company and its shareholders, and it is likely to attract even more investors to Amazon's stock.
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