"This split would give our employees more flexibility in how they manage their equity in Amazon,” a company spokesperson said.
Amazon shares up 7 percent in extended trading
Photo Credit: Unsplash
Amazon.com said on Wednesday its board approved a 20-for-1 split of the e-commerce giant's common stock and authorized a $10 billion (roughly Rs. 76,180 crore) buyback plan, sending the company's shares up 7 percent in extended trading.
This is the first stock split by Amazon since 1999 and will give investors 19 additional shares for every share they hold. Trading based on the new share price will begin on June 6.
Amazon's share split is similar to the one announced by Google parent Alphabet last month. Several mega cap companies such as Apple, Tesla and Nvidia have split their stocks since 2020.
Amazon's stock, which closed at $2,785.58 (roughly Rs. 2,12,000) on Wednesday, has nearly doubled over the last two years, when demand for both its e-commerce and cloud computing business surged in the wake of the COVID-19 pandemic.
"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.
The stock buyback replaces the previous $5 billion (roughly Rs. 38,000 crore) stock repurchase authorised by Amazon's board in 2016, under which the company had repurchased $2.12 billion (roughly Rs. 16,000 crore) of its shares.
© Thomson Reuters 2022
Get your daily dose of tech news, reviews, and insights, in under 80 characters on Gadgets 360 Turbo. Connect with fellow tech lovers on our Forum. Follow us on X, Facebook, WhatsApp, Threads and Google News for instant updates. Catch all the action on our YouTube channel.