Amazon Announces 20-1 Stock Split

First Stock Split Since 1999

Positive Market Reaction

Amazon's board of directors has approved a 20-for-1 stock split, its first since 1999 and fourth since the company's IPO in 1997. The split will go into effect today, June 6, 2023.

The market has reacted very positively to the announcement. Amazon's stock price jumped over 5% in pre-market trading. The split will make Amazon's shares more affordable for retail investors, which could lead to increased demand and a further rise in the stock price.

Stock splits are often seen as a sign that a company is performing well and is confident in its future prospects. Amazon's decision to split its stock is a clear indication that the company is in a strong financial position and is optimistic about its future growth.

Here are some of the reasons why stock splits are typically viewed as positive events:

• They make a company's shares more affordable for retail investors.
• They can increase demand for a company's shares.
• They can lead to a rise in the stock price.
• They can be a sign that a company is performing well and is confident in its future prospects.

Amazon's stock split is a positive development for the company and its shareholders. It is a sign that the company is in a strong financial position and is optimistic about its future growth.