Retail investors rejoice as Amazon.com stock splits 20-for-1
June 8, 2022
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It’s official: Amazon.com, Inc. ($NASDAQ:AMZN) (AMZN) is splitting its stock 20-for-1. By splitting the stock, Amazon will make it more affordable for retail investors to buy into the company. Shares of Amazon rose 4% in early trading Monday on the news. The stock split is a common move among companies with high share prices that want to make their stock more accessible to a wider range of investors. For Amazon, the move could help attract more mom-and-pop investors to its shareholder base. But does a stock split really matter? In the short term, probably not. The move is more of a psychological one than anything else. But in the long term, it could be a smart move for Amazon. For one, it will make the company more attractive to index funds, which often avoid stocks with high share prices. That could lead to more institutional investors buying Amazon stock, which could provide a steadier base of support for the stock. It could also make Amazon a more attractive target for individual investors who are looking to put their money into a company with a long-term growth potential. So while a stock split might not have a big immediate impact on Amazon’s share price, it could be a positive move for the company in the long run.
On Monday, Amazon.com stock split 20-for-1, resulting in a price per share of $125.2. This news has been mostly positive, with investors rejoicing at the increased accessibility of the stock. However, the stock price closed at $124.8, up only 2.0% from the closing price on the prior day.
As an investor, it’s important to look at a company’s fundamentals in order to gauge its long-term potential. The VI app makes this analysis simple by providing key data points and valuation tools. According to VI Line, the fair price of an AMAZON.COM share is around $170. However, the stock is currently trading at $124, which represents a 27% discount. This could be a good time to buy for investors looking for value.
The recent stock split announcement by Amazon.com was greeted with enthusiasm by retail investors. The stock price rose 2.0% the following day, as investors anticipate the continued growth of the company. Amazon.com is a leader in the e-commerce and cloud computing industries, and is well-positioned to continue its growth trajectory in the coming years. Retail investors who have invested in Amazon.com stock are likely to see significant returns on their investment over the long term.
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