Amazon Announces First Stock Split Since Dot-Com Boom
20-for-One Split Approved
Company to Buy Back $10 Billion Worth of Stock
Amazon announced its first stock split since the dot-com boom on Wednesday, telling investors that they'll receive 20 shares for each share they own. The stock split will be effective on June 6, 2022, for shareholders of record as of May 27, 2022.
In addition to the stock split, Amazon also announced a $10 billion stock buyback program. The buyback program will be effective through the end of 2023.
The stock split and buyback program were approved by Amazon's board of directors on March 9, 2022. The board said the split would "give our employees more flexibility in managing their equity and make it easier for people to invest in Amazon."
The stock split will make Amazon's shares more accessible to investors. Before the split, Amazon's stock price was around $3,000 per share. After the split, the stock price will be around $150 per share.
The stock split and buyback program are a sign of confidence in Amazon's future. The company is betting that its stock price will continue to rise in the years to come.
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