Amazon stock

Amazon.com's four-digit price tag is coming down as the e-tailer announces a 20-for-1 AMZN stock split effective in June.

But sector weightings and overall construction of the average … these can be tricky things, and they're issues the editors would have to consider. The world's largest fast-food chain and nation's largest home improvement retailer represent aspects of the economy that would be diminished with their exclusion. The S&P 500 and Nasdaq Composite determine their weights by market capitalization (stock price multiplied by number of shares outstanding.) But the Dow – created way back in 1896 – is weighted by the company’s stock price.That price-weighted construction effectively shuts out companies with lofty share prices, such as AMZN. Indeed, at $2,800 a share, Amazon stock would skew the average into meaninglessness.UnitedHealth Group (UNH), at roughly $485 a share, holds the greatest weight in the average today. Furthermore, the editors construct the Dow to reflect the broader economy. That means passive funds tracking the S&P 500 must own all of its components, weighted by market value. The Amazon stock split will be the fourth in the company’s history, and it follows on the heels of Google parent Alphabet's (GOOGL) own 20-for-1 split announced in February. And just as with Google's move, Amazon's stock split could open the door for its inclusion in the elite Dow Jones Industrial Average one day.The Details on the Amazon Stock Split and BuybacksAmazon, which announced the stock split late Wednesday, will give each shareholder 19 additional shares for each share held (pending shareholder approval, of course) on June 3. Amazon’s post-split price would be well below that of HD or MCD. Kicking one of those names out in favor of AMZN would lower the consumer discretionary sector's weight in the Dow. Is that a problem? The company bought back $2.12 billion of its shares under that plan.By reducing its share count, Amazon's remaining shares will have greater perceived value by dint of both their increased scarcity and greater claims on future cash flows.But perhaps the most interesting perceived benefit of the split is that Amazon could be tapped for the 30-stock Dow Jones Industrial Average one day. Home Depot (HD), McDonald's (MCD) and Nike (NKE) are already representatives of that sector in the blue-chip bastion.Does one of those stocks get the boot? The Dow’s editors at S&P Dow Jones Indices are the ultimate arbiters of that decision – and it’s not a simple one to make. That should make AMZN shares more attractive to retail investors currently put off by the four-figure sticker price of more than $2,900." That's because a split is essentially the same thing as making change.

Amazon shares are up more than 6% on the news in after-hours trading.

And, in fact, Amazon shares (ticker: AMZN) are up nearly 7% on the news, at $2,978. While stock splits don’t mathematically create any value for holders—they’re the financial equivalent of cutting a pie into smaller pieces—retail investors tend to like them, and split announcements often trigger short-term rallies. This copy is for your personal, non-commercial use only.

Amazon stock surged by more than 3% in premarket trading on Thursday after the online retailer announced a 20-for-1 stock split.

The stock split is still subject to approval by shareholders. They are normally initiated after a large run up in the share price. Amazon hopes the 20-for-1 split will make the company’s stock more attractive to a larger pool of investors.

Bezos doesn't care for splits though, as we saw Amazon stock swell up toward $3,775 near its highs. When new CEO Andy Jassy took over in the summer of 2021, ...

In combination with a strong quarterly report, the news was enough to send the stock higher by 10.1% to all-time highs. On Tuesday, Amazon stock broke the prior 2021 low from January near $2,707. Admittedly, that’s a wide range, but it’s where the 10-week, 21-day and 50-day moving averages come into play, along with the daily VWAP measure. However, the stock could not hold those gains for long. The $2,880 area was former support turned resistance. A stock split from Jeff Bezos & Co. would have likely propelled the stock to new all-time highs. That came as the company announced a 20-for-1 stock split and a $10 billion buyback plan. In other words, the climate has changed. In the course of 14 sessions, Tesla stock rallied more than 80% into its split date. 2022 is not the same climate — at all. Now though, we’re in a different climate. Bezos doesn’t care for splits though, as we saw Amazon stock swell up toward $3,775 near its highs.

Last night, Amazon ( AMZN 4.75% ) announced that it would be splitting its stock 20-for-1, the first time this $3,000 stock has split its shares since ...

Assuming the split is a catalyst for shares to go up, I hope management spends a large portion of that $10 billion share buyback before then. The last repurchase was at the end of 2011 and beginning of 2012, after the stock fell some 25%. That's roughly the same plunge shares have taken recently. More than the stock split, investors should buy the stock because it appears cheap on the basis of the sum of its parts, and it looks like management feels the same way. Under Bezos, Amazon sought to spend as much money as possible on growth ventures, so the fact that management is upping share repurchases means it must see its stock as woefully undervalued. As you can see above, shares have badly lagged the market and many of its large-cap technology peers over the past 20 months or so. It's hard to say, but it's possible management might be feeling some heat from employees (many of whom get paid in Amazon stock) over the stock's recent performance.

The Seattle-based e-commerce company is the latest tech giant to announce it will split its shares, following Apple, Tesla, and Google.

The stock split itself will not make Amazon a more valuable company. Will owners of Amazon stock before the 20-to-1 split have 20 times the amount of shares once the stock splits? Does the stock split make Amazon a more valuable company? Nope. The total value of your Amazon shares will be worth the same as they were the moment before the split. This isn’t a first for Amazon (the company’s stock split three times in the 1990s, reports CNBC), but it will be Amazon’s first stock split this century. Amazon has announced that it will split shares by a factor of 20-to-1.

Amazon announced a 20-for-1 stock split that should not surprise investors. Read this article to check out why we reiterate our Buy rating on AMZN stock.

Insider shared that (edited): We believe that the significant rise in its base pay was its response to a series of departures from its senior ranks. (Insider) AMZN has caught up on fulfillment capacity after doubling its network since the pandemic began, & we expect AMZN to reap the benefits of its roughly 2.5-year investment cycle in 2022. The company has undoubtedly been buffeted by the reopening headwinds that affected many of its e-commerce peers. Furthermore, these executives have been drawn to the startup culture, a boon to companies like Amazon in their earlier days. Amazon highlighted that one of the key reasons was to help its employees manage their SBC better. This past year has seen a particularly competitive labor market, and in doing a thorough analysis of various options, weighing the economics of our business and the need to remain competitive for attracting and retaining top talent, we decided to make meaningfully bigger increases to our compensation levels than we do in a typical year. Insider also reported that cryptocurrency and Web 3.0 companies had attracted top talents from the mega tech firms to fill their ranks. After all, since Google's (GOOG)(GOOGL) similar 20-for-1 proposed stock split last month, the e-commerce behemoth is the only one left in the FAAMG class with a four-digit stock price. Amazon also alluded to the narrative as reported by Bloomberg: "The e-commerce giant, in an emailed statement, said the split is aimed at giving employees more flexibility in how they manage their equity." Therefore, we believe the headwinds over its NTM FCF yield should normalize moving ahead.

The Biden administration is considering imposing sanctions on Russia's state-owned atomic energy company, Rosatom, a major supplier of fuel and technology to ...

Amazon's stock is splitting—not in half, but in 20 bite-sized pieces to attract the attention of retail investors and Wall Street's index makers.

The benefits of such membership might be a small but meaningful boost if the goal is to attract more retail investors. For Amazon and Google, the stock splits might also be a path into the Dow Jones Industrial Average, a 30-company index of stocks that tends to exclude high-priced securities. If the company board agrees at an upcoming meeting this May, the latest split will take effect in early June.

A long time ago, when retail investors were a more significant factor in stock trading, companies split their stocks to make single shares more affordable.

That would be wild, but consider that its shares are up almost 500-fold from its 2001 low point and people think dogecoin is worth something. Amazon's shares nonetheless jumped 6% on the news, because investors have collectively convinced themselves that stock splits are a reason to pay more for a stock. Amazon did this three times in the ’90s as its shares ran up during the dotcom boom.

New York (CNN Business) Amazon shares are about to get 20 times less expensive. The company announced Wednesday its board approved a 20-for-1 stock split, ...

Amazon on Wednesday said its board of directors has approved a 20-for-1 stock split.

Amazon just reported its slowest rate of growth for any quarter since 2001 and, according to a recent Wall Street Journal report, billionaire activist investor Dan Loeb, who's been adding to his Amazon holdings, told investors on a private call that he sees about $1 trillion in untapped value at the company. Amazon is the latest highly valued tech company to pull down the price of each share through a split. Were the split to happen as of Wednesday's close, the cost of each share would go from $2,785.58 to $139.28, and each existing holder would get 19 additional shares for every one they own.

Amazon's board has approved the company's first stock split in more than two decades. Subject to shareholder approval, the 20-for-1 split would revalue ...

Trading is expected to begin on a split-adjusted basis on June 6, 2022.” The new authorization replaces a prior $5 billion buyback plan, approved in 2016. Amazon offers restricted stock units as part of its standard pay package for corporate and tech employees.

Amazon.com Inc. 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 ...

Retail investors already had access to fractional shares, diminishing the appeal of a more affordable stock price.

Each shareholder will still own the same percentage of the company after the split.Unlike stock splits, stock buybacks often are legitimately a good thing for shareholders. After the close of regular trading Wednesday, Amazon.com shares surged as much as 10% after the internet giant announced plans for a 20-for-1 split. The company also said it would buy back up to $10 billion of its stock.Companies that do stock splits make the point that the maneuver will permit new investors to buy shares at a more affordable price. The internet company’s shares also initially soared, but in subsequent days the gains faded — as will likely be the case for Amazon.More From Writers at Bloomberg Opinion:Excited About a Digital Dollar? Not So Fast: Darrell Duffie‘Buy the Dip’ Is No Longer a Sure Thing for Investors: Mohamed A. El-ErianVolatility Is the Price of a Safer Banking System: Robert BurgessThis column does not necessarily reflect the opinion of the editorial board or Bloomberg LP and its owners.Tae Kim is a Bloomberg Opinion columnist covering technology. Alphabet Inc. generated buzz when it announced a 20-for-1 split of its own last month. By reducing the number of shares in the market, investors’ ownership stakes do become larger.But in this case, Amazon’s share buyback might not make that much of a difference.