Amazon.com Inc. said Wednesday that its board approved a 20-for-1 split of the e-commerce giant’s common stock and a $10 billion buyback plan, sending the company’s shares up 7% in expanded trading. authorized.
This is the first stock divided by heroine From 1999 onwards and will give investors 19 additional shares for every share they hold. Trading based on the new share price will start from June 6.
Amazon’s stock split is similar to that announced last month by Google parent Alphabet Inc. Several mega cap companies such as Apple Inc., Tesla and Nvidia have split their shares since 2020.
Amazon’s stock, which closed Wednesday at $2,785.58, has nearly doubled over the past two years, when demand for both its e-commerce and cloud computing businesses surged in the wake of the COVID-19 pandemic.
“This split will give our employees more flexibility in managing their equity in Amazon and make the share price more accessible to those looking to invest in the company,” an Amazon spokesperson said.
The stock buyback replaces a previous $5 billion stock repurchase authorized by Amazon’s board in 2016, under which the company repurchased $2.12 billion of its shares.
The company’s market capitalization stood at about $1.4 trillion as of its previous close, after shares fell nearly 16% this year amid a technical downturn.
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