Amazon announces 20-for-1 stock split, $10 billion buyback
It’s the first split since 1999 and the fourth since Amazon’s IPO in 1997.
The company also said its board has authorized Amazon to buy back up to $10 billion worth of shares.
Andy Jassy, chief executive officer of Amazon.Com Inc., during the GeekWire Summit in Seattle, Washington, U.S., on Tuesday, Oct. 5, 2021.
Amazon announced its first stock split since the dot-com boom, telling investors on Wednesday
that they’ll receive 20 shares for each share they currently own. The stock soared 6% in extended trading.
The company also said the board authorized it to buy back up to $10 billion worth of shares.
Stock splits are cosmetic and do not fundamentally change anything about the company, other than possibly making the shares
Were the split to happen as of Wednesday’s close, the cost of each share would go from $2,785.58 to $139.28
Amazon is the latest highly valued tech company to pull down the price of each share through a split.
Google parent Alphabet announced a 20-for-one split in February. In mid-2020, Apple disclosed plans for a four-for-one split
The stock was the worst performer among Big Tech companies last year and has dropped 16% so far in 2022, joining a decline across the sector.