Amazon.com (AMZN) is about to get a lot cheaper.
All after the company announced a 20 for 1 stock split – its first split in about 23 years. Once approved by shareholders, it should go into effect on June 6.
According to CNBC, “This is Amazon’s fourth stock split since its IPO in 1997, and its first since 1999, when the company was a fraction of its current size. It also split on a two-for-one basis on June 2, 1998; a three-for-one basis on Jan. 5, 1999; and a two-for-one basis on Sept. 2, 1999.”
News of the split sent the AMZN stock up $183 in afterhours to $2,969.70.
Even better, the company authorized a stock buyback up to $10 billion.
As noted by The Wall Street Journal, “Amazon’s newly approved repurchase authorization replaces the previous $5 billion stock repurchase authorization approved in 2016. It had bought back $2.12 billion worth of shares under that authorization. The company didn’t buy back any stock in 2019, 2020 or 2021, but repurchased 500,000 shares for $1.3 billion between Jan. 1 and Feb. 2, 2022, according to its annual securities filing.”