Amazon shares rise 5% in initial surge after first stock split in more than two decades – GeekWire

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Amazon at less than $130 a share? No, the market hasn’t completely cratered – today is the first day of trading after the company’s 20-for-1 stock split, approved by shareholders at Amazon’s recent annual meeting.

This is Amazon’s first stock split since before the dot-com breakup. The split theoretically does not impact overall value, increasing shares outstanding while reducing the value of individual shares. As Bloomberg’s Jeran Wittenstein saysit’s like exchanging a $20 bill for two $10 bills, although in this case it’s actually exchanging a $20 bill for 20 dollar bills

However, Amazon shares initially rose more than 5% after the split on Monday near $129, partly due to demand from retail investors who can now afford individual stocks at a lower price.

Announcing the stock split in March, Amazon said the move “would give our employees more flexibility in how they manage their capital in Amazon and make the stock price more accessible to people who want to invest in the company”.

Amazon was previously trading at over $2,440 per share.

The company has split its stock three times before, all in the late 1990s: a 2-for-1 split in June 1998; a 3-for-1 split in January 1999; and a 2-for-1 split in September 1999.

This latest split follows a turbulent few weeks for the company, including the news on Friday that Amazon Consumer CEO Dave Clark will be leaving the company, and a series of close votes on a record number of shareholder proposals. at the annual meeting, indicating an undercurrent. opposition to the board of directors and management.

Amazon’s market value hovers around $1.3 trillion.

Google’s parent alphabet is as follows. Its stock split is should come into force in July.

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