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Amazon announces 20-for-1 stock split, $10 billion share buyback

Stock Markets Mar 09, 2022 10:05PM ET
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© Reuters. The logo of Amazon is seen at the company's logistics center in Bretigny-sur-Orge, near Paris, France, December 7, 2021. REUTERS/Gonzalo Fuentes

(Reuters) - Amazon.com Inc (NASDAQ:AMZN) said on Wednesday its board approved a 20-for-1 split of the e-commerce giant's common stock and authorized a $10 billion buyback plan, sending the company's shares up 7% in extended trading.

This is the first stock split by Amazon since 1999 and will give investors 19 additional shares for every share they hold. Trading based on the new share price will begin on June 6.

Amazon's share split is similar to the one announced by Google parent Alphabet (NASDAQ:GOOGL) Inc last month. Several mega cap companies such as Apple Inc (NASDAQ:AAPL), Tesla (NASDAQ:TSLA) and Nvidia (NASDAQ:NVDA) have split their stocks since 2020.

Amazon's stock, which closed at $2,785.58 on Wednesday, has nearly doubled over the last two years, when demand for both its e-commerce and cloud computing business surged in the wake of the COVID-19 pandemic.

"This split would give our employees more flexibility in how they manage their equity in Amazon and make the share price more accessible for people looking to invest in the company," an Amazon spokesperson said.

The stock buyback replaces the previous $5 billion stock repurchase authorized by Amazon's board in 2016, under which the company had repurchased $2.12 billion of its shares.

After shares declined about 16% amid a tech rout this year, the company's market capitalization stood at roughly $1.4 trillion as of last close.

Amazon announces 20-for-1 stock split, $10 billion share buyback
 

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Comments (17)
Marco cuevas
Marco cuevas Mar 10, 2022 12:27PM ET
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Amazon stock was higher than it is todat in early 2020!!! Wait till the splitt This will.fall like a rock and most likely in premarket or.after hours youhave been.warned.
Vitkóczi Zoltán
Vitkóczi Zoltán Mar 10, 2022 1:10AM ET
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Can Investing handle a stock split in their graphs, or I will see a gap?
RF RF
RF RF Mar 10, 2022 1:10AM ET
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Of course they can handle it.
Djjoshski martin
Djjoshski martin Mar 10, 2022 12:17AM ET
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remember guys the last time they split was just before dot com boom
Ñaño Sanchez
Ñaño Sanchez Mar 09, 2022 8:05PM ET
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If they split the shares, the price split too???
Benjamin USA
Benjamin USA Mar 09, 2022 8:05PM ET
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Of course silly head haha :)
Ishiit Lilaa
Ishiit Lilaa Mar 09, 2022 8:05PM ET
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Yes
RF RF
RF RF Mar 09, 2022 8:05PM ET
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🤣
Marco cuevas
Marco cuevas Mar 09, 2022 7:52PM ET
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Time to get soe oreamazon shares
Imre Zsombor Varga
Imre Zsombor Varga Mar 09, 2022 6:45PM ET
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new GME strong $$$
Imre Zsombor Varga
Imre Zsombor Varga Mar 09, 2022 6:44PM ET
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i 10shares *20 200 shares nice
Anony Mous
Anony Mous Mar 09, 2022 6:13PM ET
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I see another union organization attempt in their near future.
Tru Gfu
Tru Gfu Mar 09, 2022 5:40PM ET
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it is a total mystery why stocks jump on a split...why does anyone care if we have 1 share for 3000 or 20 shares for 150?the buyback at least reduces total shares but 10 billion is tiny relative to market value of Amzn. shoot they probably give out a couple billion to employee options!
Jesper Kristensen
Jesper Kristensen Mar 09, 2022 5:40PM ET
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It is far from a total mystery The 20 times split makes the stock more accessable to the “comen” amateur investor... If you dont have 100000 of dollars to invest - buying shares of a company costing 3000 a share makes it hard to diversify your investment without ending up with to high exspore to one stock/sector👍
Benjamin USA
Benjamin USA Mar 09, 2022 5:40PM ET
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Also makes it easier to speculate on the stock and sell options. There are multiple benefits.
Dave Jones
Dave Jones Mar 09, 2022 5:38PM ET
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Buybacks. The cornerstone of the American economy!
 
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