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 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 stock
repurchase authorised by Amazon's board in 2016, under which the company had
repurchased $2.12 billion of its shares. © Reuters
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