Amazon stock jumped late Wednesday as the e-commerce giant announced a 20-for-1 stock split and authorized a $10 billion buyback plan.
according to Amazon (AMZN), shareholders of record at the close of business on May 27 will receive an additional 19 shares for every 1 share owned. This will be reflected in their accounts on or around June 3rd. Trading on a retail basis begins on June 6. The arrangement is subject to shareholder approval.
Amazon stock rose 7% to 2,990, during after-hours trading in stock market today.
The company will hold its annual shareholder meeting on May 25th. The $10 billion buyback plan replaces the previous $5 billion plan, of which $2.12 billion in stock was repurchased.
Amazon stock fell 26% from a record high
Amazon is joining several major tech companies to announce a stock split. google owner the alphabet (Google), the parent company of Google, a 20 in 1 stock split On February 21. in August , an Apple He announced plans for a 4-for-1 split. Tesla It also told investors in August that it would impose a 5-for-1 split.
A stock split lowers the stock price, which can make it more attractive to retail investors.
As of Wednesday’s close, Amazon’s stock is down 26% from its high of 3,773.08, recorded on July 13.
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