Amazon shares jumped after the retail giant rewarded investors with a 20-for-1 stock split, announced after the close of trading Wednesday. The move comes nine months after Andy Jassy became CEO, taking over from Jeff Bezos.
The split stock would be about $139.29 per share, based on Wednesday’s closing prices and applies to all three classes of stock. The lower price could attract more investors.
“Amazon’s Board of Directors approved a 20-for-1 split of our common stock, which will be subject to shareholder approval. 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. If approved by shareholders at our annual meeting in May, shareholders would see the split-adjusted shares reflected in their accounts in early June” the company said in a statement shared with FOX Business.
AMAZON CEO ANDY JASSY: WHAT TO KNOW
Shareholders of record on May 27, 2022, will receive 19 additional shares for every one held, the company detailed in a filing with the Securities and Exchange Commission. Trading of the split shares will begin on June 6.
The move comes under the direction of CEO Andy Jassy, who took over from Jeff Bezos, last July.
AMAZON STOCK, 12 MONTHS -11.2%
Over the past 12-months, Amazon shares have fallen 11.2% compared to the S&P 500’s 7.6% gain through Wednesday.
Additionally, the tech giant announced its board has authorized the company to repurchase $10 billion in stock “opportunistically from time to time” the filing noted.
GOOGLE’S 20-FOR-1 STOCK SPLIT
Amazon joins Google, which also announced a 20-for-1 split in February.
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