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

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It’s the first split since 1999 and the fourth since Amazon’s IPO in 1997.

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The company also said its board has authorized Amazon to buy back up to $10 billion worth of shares.

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Andy Jassy, chief executive officer of Amazon.Com Inc., during the GeekWire Summit in Seattle, Washington, U.S., on Tuesday, Oct. 5, 2021.

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Amazon announced its first stock split since the dot-com boom, telling investors on Wednesday

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that they’ll receive 20 shares for each share they currently own. The stock soared 6% in extended trading.

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The company also said the board authorized it to buy back up to $10 billion worth of shares.

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Stock splits are cosmetic and do not fundamentally change anything about the company, other than possibly making the shares

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Were the split to happen as of Wednesday’s close, the cost of each share would go from $2,785.58 to $139.28

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Amazon is the latest highly valued tech company to pull down the price of each share through a split.

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Google parent Alphabet announced a 20-for-one split in February. In mid-2020, Apple disclosed plans for a four-for-one split

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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.

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