Amazon shares are set to get 20 times cheaper as its board approved a 20-for-1 stock split. This will be the first stock split for the company since 1999 which will come into effect from June 6. This announcement shall not affect the shareholders as the stakes will be worth the same, but the number of shares will increase by 20 times.
Amazon’s current share price revolves around the $2,785 mark and after the stock split, the estimated price would be around $139 a share. The company statement read, “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.” The company also announced an incentive, a repurchase program for $10 billion of its stock. This can help the company inflate its value by pulling the supply out of the stock market.
Major companies like Apple and Tesla announced stock splits in recent years but one company with a vaguely high stock price that has never split its shares is Berkshire Hathaway and said it never would.
