Splitting its stock provides one avenue to alleviate bearishness for the group. Year-to-date Amazon has disappointed its shareholders with a loss of 39.23% (as of 16 June) amid wider sentiment shift away from risk-on assets. The group’s stock has grown by close to 110% over the past five years, along with other tech stocks in a bull run as the company added robust growth from late 2016.īut growth has slowed, with the stock failing to make much headway since a rally in the stock market in mid-2020. The reasons for the company splitting its stock are no different to those of other companies. The stock began trading on a split-adjusted basis on June 6. When did Amazon's stock split and why did it happen?Īmazon's stock split came into effect with the close of trading on June 3 - that means that the company's closing price on that day was divided by 20 to accommodate for the increase in the number of shares. This was before the stock saw an ultimate comedown towards 2000, which took several years before it rebounded. Each previous split caused a brief rally in the share price as more people bought Amazon stock. The successive splits occurred during the dotcom bubble, with Amazon continually diluting its shares to bring in a new wave of investors. The company carried out three splits in the late 90s, with a two-for-one split on 2 June 1998, a three-for-one split on 5 January 1999 and a two-for-one split on 2 September 1999. Amazon historical stock splitsĪmazon will split its shares for the fourth time since its initial public offering (IPO) in 1997, and the first time since 1999. Investors holding stock in Amazon will receive 19 additional shares of the company, while the price of each share will be divided by 20 before other stock movements are taken into consideration. Alphabet announced it intends to split its shares on a 20-for-1 basis on 15 July 2022.Īmazon ( AMZN) will join this growing list of tech giants when it splits its stock in a 20-for-one pattern. In August 2020, both Apple (AAPL) split its stock on a 4-for-1 basis, while Tesla (TSLA) split its shares in line with a 5-for-1 ratio, with the former being Apple’s fifth split. The stock split is apparently a rite of passage for many large companies. The stock-split move reduces the price of a single share while maintaining the overall market capitalisation of the company. Consequently, this acts as an investing deterrent, since a smaller number of investors will decide the outcome of the stock through their buying and selling decisions. Stock splits are primarily used when a company’s share price becomes too expensive for many investors to buy. Trading resumed on 6 June, and Amazon's post-split adjusted stock was well-received by the market, showing gains of 2% and closing at $124.80.ĪMZN has since slid due to rising inflation and interest rates hikes, with the latest coming on 15 June, as the US Federal Reserve raised its benchmark interest rate, the federal funds rate, by 0.75 percentage points - the biggest increase since 1994.Īt the time of writing on Thursday, 16 June, the stock was trading at $102.80, indicating a 7.22% drop over the past month. Each AMZN shareholder received 19 additional shares for every one share held at the close of business on 27 May. Stock splits are becoming commonplace among other tech giants, such as Google’s parent company Alphabet ( GOOGL), who have been keen to kick life back into stocks that have dipped since the beginning of 2022. With a lower price, an individual stock may appear more attractive to a retail investor.Īmazon's stock split took place on 3 June 2022, marking the fourth such event since the company became public in 1997. Photo: WHYFaskarimRAME / Īmazon ( AMZN) revealed a 20-for-1 stock split in filings to the US Securities and Exchange Commission (SEC) on 9 March - after the filing, the company's stock rose 24%.
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