Amazon.com Inc (NASDAQ: AMZN) shares jumped 10% in after-hours trading on Wednesday as the technology giant made two big announcements, both well-received by the stockholders.
Amazon.com Inc announced a 20-for-1 stock split
Amazon says its Board of Directors has authorised a 20-for-1 stock split to boost liquidity and lower share price to what’s more comfortable for a broader range of investors. The company spokesperson said:
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.
The announcement comes shortly after peer Alphabet Inc made a similar move. Trading on a split-adjusted basis will begin on June 6th. It’s the first time Amazon is executing a stock split since 1999.
Amazon to buyback $10 billion worth of its shares
Also on Wednesday, Amazon said its Board authorised a massive stock repurchase programme worth $10 billion.
The news comes a month after Amazon reported its financial results for the fourth quarter. The American multinational technology giant noted its slowest growth rate since 2001 in fiscal Q4.
Amazon shares have been the worst performing in tech giants over the past four months. The stock that trades at a PE multiple of 43 is still down roughly 18% from its high in mid-November 2021.
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