For 22 years since the last split, the company's shares have risen by 4500%.
9 March Board of Directors Amazon Approved split Shares. If shareholders support the decision, crushing will be carried out 3 June in the ratio 20:1. All investors, who will hold shares on data on 27 May, will receive additional paper on one paper 19 Shares.
Split won't affect Amazon's market cap: the number of shares will increase in 20 once, but the price will decrease proportionally.
9 In March, Amazon securities closed at a level near the postmarket 3000 $. And if the split was held today, then the share price would have fallen to 150 $. Wherein 20 shares would collectively give all the same 3000 $.
Typically, companies split, when their papers are expensive. For example, several thousand dollars, как у Amazon. So they want to make stocks more accessible to ordinary retail investors..
Amazon also announced the repurchase of shares for $ 10 billion. AMZN securities in the postmarket rose by 7%.
Amazon is the last of the major companies to report on the split. In 2020, the split was carried out by Apple and Tesla, in 2021 — Nvidia. In July 2022, the split will be held by Alphabet.
After the IPO in 1997, Amazon conducted three splits.: in 1998 and twice in 1999. Since the last split, Amazon's securities have risen in price by about 4500% — with 60 to 2786 $.
Promotions after the split
Nasdaq studied the profitability of shares from S&P 500 from 2012 to 2018. Output: after the announcement of the split, the shares are ahead of the market on 2,5%, and six months after the split itself — on 4%.
And Yahoo Finance has studied the data since 2010 and made the opposite conclusion.: three months after the split, the stock is slightly behind the market, in six months - slightly ahead.
Nasdaq and Yahoo articles are average data for previous periods. And not a fact, that Amazon shares will behave according to the template. Especially now, when markets fear a rate hike FED and other risks. That's why you should first monitor the financial results of a particular company., and after that - for its splits and buybacks.
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