Amazon 20-for-1 Stock Split and $10 Billion Buyback Plan
Amazon e-commerce and cloud-computing giant declared a 20-for-1 stock split and announced stock-repurchase program.
Amazon 20-for-1 Stock Split and $10 Billion Buyback Plan
Amazon shareholders, the 20-to-1 stock split will drastically reduce the tech giant’s notoriously expensive share price.
Amazon 20-for-1 Stock Split and $10 Billion Buyback Plan
Today, one share of Amazon stock costs about $3,000. If the company’s shareholders approve the split, it will drop to about $150 a share.
Amazon 20-for-1 Stock Split and $10 Billion Buyback Plan
That should entice new retail investors, and perhaps even earn it a spot in the Dow Jones Industrial Average.
The Amazon split follows an announcement last month that Alphabet (GOOGL) is also splitting its shares 20-for-1, effective July 15. Apple (AAPL) split its stock 4-for-1 in 2020.
Amazon 20-for-1 Stock Split
News of the split and a new $10 billion stock buyback was announced in an 8-K filing with the US Securities and Exchange Commission on March 9.
Why do companies split their stock?
Splitting a stock is mostly a marketing maneuver, aimed at making a high-priced stock more attractive to retail investors who might consider buying it.
Why do companies split their stock?
It can also make existing investors happy by multiplying the number of shares they have.
Why do companies split their stock?
The company has split its shares three times, most recently in 1999 when Amazon was five years old.
Source https://qz.com/
If the company board agrees at an upcoming meeting this May, the latest split will take effect in early June.