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

Published 03/09/2022, 05:18 PM
Updated 03/09/2022, 10:05 PM
© 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.

Latest comments

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.
Can Investing handle a stock split in their graphs, or I will see a gap?
Of course they can handle it.
remember guys the last time they split was just before dot com boom
If they split the shares, the price split too???
Of course silly head haha :)
Yes
🤣
Time to get soe oreamazon shares
new GME strong $$$
i 10shares *20 200 shares nice
I see another union organization attempt in their near future.
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!
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👍
Also makes it easier to speculate on the stock and sell options. There are multiple benefits.
Buybacks. The cornerstone of the American economy!
Is it usual to do a buyback and a share split close together. I thought businesses normally chose one versus the other.
Is it usual to do a buyback and a share split close together. I thought businesses normally chose one versus the other.
I was up in the air about whether or not to buy some Google. Now I might buy Amazon.
I was up in the air about whether or not to buy some Google. Now I might buy Amazon.
What does this mean? For instance if I own 1 share.
Now you own 20!!!!💐💐💐🎂🎂🎂🙌🙌🚀🚀🚀🚀😂😁
The theory behind this action. Is the stock split will make the price of amazon cheaper. Therefore attracting more investors at a lower price.You will get 20 shares and hopefully the value of the shares will increase when more buyers are attracted
Your share become overvalued
Great Amazon.
Great Amazon.
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