Amazon on Wednesday said its board of directors has approved a 20-for-1 stock split. It’s the first split since 1999 and the fourth since Amazon’s IPO in 1997. “This split would give our employees more flexibility in how they manage their equity in Amazon and make the share price more accessible for people looking to invest in the company,” an Amazon spokesperson said in a statement.
ETF Newz Says:
The stock split technically creates no value, but it does make the stock more affordable which creates excitement for the retail investor. This is a growing trend as of late, we have seen splits from TSLA, APPL and GOOGL. Based on prior splits, a company that splits its shares sees an increase over 20% in the following year. Amazon as you can imagine has lots of ETF exposure and resides in over 400 ETFs. There is talk that this split could add Amazon to the Dow Industrials Index.