Amazon reported its first stock split since 1999, informing investors that they will get 20 shares for each share they own, according to a report by Amazon on Wednesday.
- The company stated that the board approved it to buy back up to $10 billion worth of stocks.
- Stock splits do not change the fundamentals of the company, other than making shares more accessible to a larger number of investors due to their lower price.
- If the split was to happen at the close of Wednesday, the cost of every share would fall from $2,785.58 to $139.28 per share, and every existing holder would get 19 extra shares for one they hold.
- CEO Andy Jassy has faced many challenges after starting his tenure in July. The stock was the worst performer among Big Tech stocks last year and has so far plunged 16% in 2022.
Amazon is the recent highly valued technology company to pull down the price per share via a stock split. AMZN up +5.58%, Pre-market trading