Amazon Announces 20-for-1 Stock Split and $10 Billion Buyback
Posted on 03/10/2022
Online retailer giant Amazon.com, Inc. announced its first stock split since 1999 and the fourth since Amazon’s IPO in 1997. Shareholders will receive 20 shares for each share they currently own. Amazon stock soared 6% in extended trading. Distributions from the stock split will be made to Amazon shareholders at the close of business on June 3, and trading will begin on a split-adjusted basis on June 6. Stock splits increase the number of shares in a company while decreasing the value of each individual share.
“This split would give our employees more flexibility in how they manage their equity in Amazon and make the share price more accessible for people looking to invest in the company,” an Amazon spokesperson said in a statement.
Amazon’s board authorized the company to buy back up to US$ 10 billion worth of shares.
Google parent Alphabet Inc. announced a 20-for-1 split in February 2022. In the middle of 2020, Apple Inc disclosed plans for a 4-for-1 split. Tesla, Inc. told investors it was instituting a 5-for-1 split.
