Shares of the e-commerce giant saw a 5.4% surge as the company announced a 20-to-1 stock split and a gigantic buyback worth $10 billion. This is the company’s first stock split since 1999 and the adjusted trading is said to begin from 6th June.
Amazon’s performance at the markets was considered somewhat lacklustre recently. The announcement revitalised the interest of investors in the stock as it closed around $2,936 per share. On Wednesday, the stock had closed at $2,785.58, near a two-year low. Maybe the split and buyback announcements were the things needed for the stock to break out of its price weakness.
This is a very “investor-friendly” move. After the split, the share price would be around $139, which would allow several beginners and small investors to take part in the company’s stocks. Stock splits were also used by large corporations like Alphabet Inc. and Apple Inc. to increase retail participation in their shares. Shares of Apple and Tesla saw a sharp uptake after their split in 2020.
Amazon is among the count of those American companies that protests against Russia’s assault on Ukraine by ceasing its operations in the country. Amazon stopped its shipments in the country and cut the Amazon Prime service as well. In other news, Amazon’s exporter base in India crossed 1 lakh recently, observing a 66% growth since January 2020, under its Amazon Global Selling program. The program started in 2015 with only 100 exporters.
Highlight by Aman Agarwal.