Bloomberg: A stock split and a massive buyback could just be the boost Amazon.com Inc. needs to break out of a spell of prolonged share price weakness.
Amazon said late Wednesday it intends to boost its outstanding shares by a 20-to-1 ratio, the e-commerce giant’s first stock split in more than two decades. That news, combined with a $10 billion share-buyback proposal, saw the stock advance 5% on Thursday, even as other mega-caps fell. Trading on a split-adjusted basis is expected to begin on June 6, according to a company filing.
Morgan Stanley analyst Brian Nowak said it’s encouraging that Amazon is turning more “shareholder friendly,” with the company joining the likes of Apple Inc. and Alphabet Inc. which have used splits to make their stocks more attractive to retail investors.
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