Shares of Amazon.com (AMZN) now trade at $124.71.
All after a 20:1 stock split. So, if you owned one share of Amazon, you now own 20 shares after the split that each cost about 1/20th of the previous price. At the same time, the value of your investment does not change.
Even better, there are more big splits on the way.
Shopify (SHOP) announced it would split 10 for one. That is, if it gets shareholder approval for the split at a June 7 meeting.
Tesla (TSLA) could split again after its annual meeting on August 2. “Investors like the idea of a stock split because of what happened last time. Tesla split its stock in August 2020 and shares rose more than 60% in the two and a half weeks between the announcement and the actual split,” says Barron’s.
Also, “By itself, a stock split should neither create nor destroy any value,” says Christopher Harvey, Wells Fargo’s head of equity strategy, as quoted by Barron’s. “The stocks that split typically have positive price momentum, generally good things are happening at the company, and fundamentals are improving. That’s what the market is focused on, and a stock split is just something you do when that’s happening.”
