Connect with us

Business

Amazon Stock Split, $10 Billion Buyback In The Works

Published

on

Stock Buyback Market Ticker Prices Share Repurchase 3d Illustration-Amazon Stock Split-SS-Featured

An Amazon stock split, as well as a stock buyback, is currently in the works. Online retail titan Amazon will hold its first stock split since the late 1990s. In addition, the Amazon board also approved a stock buyback on up to $10 billion worth of shares.

RELATED: Ford’s Auto Business Will Split Into Two Separate Units

Amazon Stock Split Gives Shareholders 20 Shares For Every Share Held

The word Split is a part of stock market vocabulary in stock-Amazon Stock Split-SS-Featured

Each shareholder will receive 20 shares for each one they hold. As a result, share prices went up by more than 6% in extended trading. Stock splits do not do anything for the company. Its main purpose is to make the price more affordable for investors through dilution. 

If the split happened during Wednesday’s close, the share price would come down from $2785.58 to $139.28. This is about 1/20th of the original price. Each shareholder will also receive 19 additional shares, each one reflecting the new share price. 

Amazon Joins Apple and Google in Splitting Its Stocks

The last time an Amazon stock split happened was 23 years ago in 1999. Amazon back then was a fraction of the size it is now. Since its inception in 1997, the company initiated a stock split four times. The first one was a two-for-one split in 1998. Then, it split stock twice in 1999, with the first being a three-for-one offer, while the second was two-for-one. 

In addition, the latest Amazon stock split follows those of Google parent company Alphabet, Apple, and Tesla. Tech industry shares exhibited high growth during the past few years, and companies had to split their stocks in order to bring share prices down. Alphabet announced a 20-for-one split last month. Meanwhile, both Apple and Tesla split stocks last year. 

Amazon Stock Split To Help Corporate Workers With Stocks

Amazon CEO Andy Jassy experienced a rough start to his career as an Amazon leader. Among Big Tech companies, Amazon became the worst performer. The company’s stock already lost 16% this year alone. It also reported its slowest growth rate for any quarter since 2001. Meanwhile, activist investor Dan Loeb told investors that the company has around $1 trillion in untapped value. Loeb is quietly amassing a formidable number of shares in Amazon. 

According to the company, the Amazon stock split aims to help corporate staffers. In a statement, a company spokesperson said that flexibility and accessibility are the keys. “This split would give our employees more flexibility in how they manage their equity in Amazon,” the spokesperson said.  At the same time, the Amazon stock split “helps make the share price more accessible for people looking to invest in the company.” 

Amazon shareholders will receive their additional stocks at the close of business on June 3. Trading under the new split-adjusted cost will start on June 6. Since its last split in 1999, Amazon shares rose by over 4,300% in value.

Watch the CNBC Television  video reporting that Amazon announces 20-for-1 stock split

Do you own Amazon stocks?

Please Select One:

View Results

Loading ... Loading ...

Do you own Amazon stock? If not, will you buy stocks once the price becomes lower?

Tell us what you think is the reason for Amazon to split its stock and institute a buyback. Share your comments below!

Click to comment

Leave a Reply

Your email address will not be published. Required fields are marked *

Continue Reading

Copyright © 2023 The Capitalist. his copyrighted material may not be republished without express permission. The information presented here is for general educational purposes only. MATERIAL CONNECTION DISCLOSURE: You should assume that this website has an affiliate relationship and/or another material connection to the persons or businesses mentioned in or linked to from this page and may receive commissions from purchases you make on subsequent web sites. You should not rely solely on information contained in this email to evaluate the product or service being endorsed. Always exercise due diligence before purchasing any product or service. This website contains advertisements.

Is THE newsletter for…

INVESTORS TRADERS OWNERS

Stay up-to-date with the latest kick-ass interviews, podcasts, and more as we cover a wide range of topics, in the world of finance and technology. Don't miss out on our exclusive content featuring expert opinions and market insights delivered to your inbox 100% FREE!

SUBSCRIBE TODAY AND GET A FREE GIFT

Get ready to stay up-to-date with the latest business and market news from around the world!

The Capitalist is here to provide you with insightful data, analysis, and even videos to keep you informed.