Amazon conducted three splits in the 2 1/2 years following its 1997 initial public offering and then halted the practice
Topics
Amazon | United States | Jeff Bezos
Amazon.com is planning to split its stock for the first time in more than two decades in a move that will end an era of four-digit stock prices for the biggest US technology companies.
Amazon intends to boost its outstanding shares by a 20-to-1 ratio, under a plan disclosed on Wednesday, joining other technology giants like Alphabet and Apple who have turned to splits to make their stocks more attractive to retail investors. That news combined with a $10 billion share-buyback authorisation sent Amazon shares up as much as 5 per cent intra day on Thursday.
As Amazon’s stock price has ballooned over the years, speculation about a potential split has been a frequent subject of speculation, which was only heightened by Alphabet’s proposed 20-for-1 split disclosed last month. Amazon conducted three splits in the 2 1/2 years following its 1997 initial public offering and then halted the practice. The topic occasionally came up at Amazon shareholder meetings but the company hadn’t taken action until now.
The e-commerce giant, in an emailed statement, said the split is aimed at giving employees “more flexibility in how they manage their equity” as well as making the stock “more accessible” for average investors.
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First Published: Fri, March 11 2022. 01:31 IST