Amazon Shares Set to Begin Trading Around USD122 After 20-1 Stock Split
Jun 6, 2022 By MarketDepth
Amazon (NASDAQ: AMZN) shares are set to begin trading around USD122 on Monday amid its 20-for-1 stock split, authorized by shareholders last month. The move will have brought down the company’s share price from Friday’s closing of USD2,440. Several companies have also used stock splits as a means of making their share prices more attractive to individual investors, while rewarding existing shareholders.
Stock Down 10% Since March
Amazon’s stock split, which went into effect on Monday, has actually caused its stock to fall amid a broad market selloff. Shares have tumbled approximately 10% since announcing the strategy in March.
“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.”Amazon said in a statement shared with FOX Business after the March announcement.
Stock splits ultimately have no fundamental effect on share value. Nevertheless, at the start of the year, they brought on bidding wars by excited investors.
“Rising rates are almost always bad for tech stocks, particularly those high multiple future earnings stocks.”Evercore ISI head of internet research Mark Mahaney during a recent interview with FOX Business
“Inflation has been a killer for companies like Amazon, if you think at some point inflation will get less worse, then the stock with the most upside in that group is probably Amazon” he explained.
The technology company’s shares have tumbled 26% throughout the year and has a current market cap of USD1.30 Trillion.