Amazon’s logo is seen at the company’s logistics center in Bretigny-sur-Orge, near Paris, France, on December 7, 2021. REUTERS/Gonzalo Fuentes
March 10, 2022
(Reuters) – Amazon.com Inc said on Wednesday that its board of directors approved a 20-for-1 split of the e-commerce giant’s common stock and approved a $10 billion buyback plan, putting the company’s stock in the expanded Trade increased by 7%.
This is Amazon’s first stock split since 1999 and gives investors 19 additional shares for every share they own. Trading based on the new share price will start on June 6th.
Amazon’s stock split is similar to the one announced by Google parent Alphabet Inc last month. Several mega-cap companies such as Apple Inc, Tesla and Nvidia have split their shares since 2020.
Amazon’s stock, which closed at $2,785.58 on Wednesday, has nearly doubled over the past two years as demand for both its e-commerce and cloud computing businesses amid COVID-19 -pandemic increased sharply.
“This split would give our employees more flexibility in managing their equity at Amazon and would make the stock price more accessible to people looking to invest in the company,” said an Amazon spokesman.
The share repurchase replaces the previous $5 billion share repurchase approved by Amazon’s board of directors in 2016, under which the company repurchased $2.12 billion of its stock.
After shares fell about 16% this year amid a tech routine, the company’s market cap was around $1.4 trillion at the last close.
(Reporting by Chavi Mehta in Bengaluru and Jeffrey Dastin in Palo Alto, California; Editing by Shailesh Kuber)
https://www.oann.com/amazon-board-approves-20-for-1-stock-split-10-billion-share-buyback/?utm_source=rss&utm_medium=rss&utm_campaign=amazon-board-approves-20-for-1-stock-split-10-billion-share-buyback Amazon announces 1:20 stock split and $10 billion share buyback