Amazon.com said Wednesday that its board approved a 20-for-20 split in the e-commerce giant’s common stock and approved a $ 10 billion (approximately Rs 76,180 crore) buyback plan, which saw the company’s shares rise 7 percent in extended transactions.
This is the first stock split by Amazon since 1999 and will give investors 19 additional shares for each of their shares. Trading will start on June 8 on the basis of the new share price.
Amazon’s share split is similar to the announcement made by Google Parent Alphabet last month. Several mega cap companies, such as Apple, Tesla and Nvidia, have split their stock since 2020.
Amazon’s stock, which closed at $ 2,785.58 (about 2, 2,12,000) on Wednesday, has nearly doubled in the past two years, while demand for both its e-commerce and cloud computing business has risen in the wake of the COVID-19 epidemic.
“This split will give our employees more flexibility in how they manage their equity at Amazon and make the share price more accessible for those looking to invest in the company,” said an Amazon spokesperson.
The stock buyback replaces the previous $ 5 billion (about Rs 38,000 crore) stock repurchase approved by Amazon’s board in 2016, under which the company repurchased শেয়ার 2.12 billion (about Rs 16,000 crore) of its shares.
Thomson Reuters 2022