Don't worry! Amazon.com Inc AMZN shares aren't down 95% on Monday. The e-commerce giant has split its stock for the first time in more than 20 years.
What To Know: Amazon announced a 20-for-1 stock split in March. Shareholders of record on May 27 were eligible to receive 19 additional shares for every one share held on June 3. Amazon began trading on a split-adjusted basis today.
Stock splits don't actually change anything fundamental about the company enacting the split, yet a cheaper share price can make the stock more accessible to a larger number of investors.
In Amazon's case, it's possible the stock split could increase access for some of the company's everyday customers, as well as make the stock eligible for a potential Dow Jones inclusion.
Why It Matters: Amazon joins a growing group of popular tech companies to announce splits in recent years. Alphabet Inc GOOG announced a 20-for-1 split just a few weeks before Amazon. In 2020, Apple Inc AAPL put forth a 4-for-1 split and Tesla gave investors 4 additional shares for each one share held as part of a 5-for-1 split.
Both Apple and Tesla fared well after announcing stock splits. Amazon has traded lower since its split was announced and remains down more than 25% year-to-date.
AMZN Price Action: Amazon shares have traded higher by about 7% over the last week leading up to the split date.
The stock was trading at $124.45 on a split-adjusted basis at time of publication, according to data from Benzinga Pro.
Photo: courtesy of Amazon.
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