Amzn Stock Splits: Past, Present, and Future Considerations

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Amazon's stock has split four times since its IPO in 1997. The first split occurred in 1998, when the stock was split 2-for-1, resulting in a new stock price of $18 per share.

This split allowed more people to invest in the company, as the lower price made it more accessible to individual investors. The stock price was more in line with the overall market, making it easier for investors to buy and sell.

The second split happened in 1999, when the stock was split 2-for-1 again, bringing the price down to $9 per share. This split helped to further increase the stock's liquidity and made it more attractive to a wider range of investors.

Since then, Amazon has split its stock twice more, in 2022, when it was split 20-for-1, resulting in a new stock price of around $140 per share.

Amazon Stock History

Amazon's stock history is a fascinating story of growth and adaptation. The company has split its shares four times since its IPO in 1997.

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The first split occurred in 1998, a two-for-one split on June 2nd. This was followed by a three-for-one split on January 5, 1999.

Amazon's successive splits during the dotcom bubble diluted its shares, bringing in new investors who briefly drove up the share price. Each split was a calculated move to attract more buyers, but ultimately led to a comedown in the stock's value.

The last split before the dotcom bubble's comedown was a two-for-one split on September 2, 1999.

Worth a look: Class S Shares

28 Year History | Amazon

Amazon has a 28-year history, with a significant presence in the retail and cloud-computing sectors. The company operates in the Retail/Wholesale sector, specifically in the Internet Commerce industry.

Amazon's market capitalization is a staggering $2.254 trillion, making it one of the largest e-commerce providers globally. The company's revenue reached $637.959 billion in the latest available data.

Amazon's business model revolves around its Prime program, which is supported by its massive distribution network. The company has also expanded into physical grocery supermarkets with the acquisition of Whole Foods Market.

Credit: youtube.com, The history of Amazon: How Amazon came to dominate retail

Amazon's cloud-computing business, Amazon Web Services (AWS), is a high-margin generating business that dominates the Infrastructure as a Service space. This business segment is a key contributor to Amazon's revenue.

The company reports revenue under three broad heads: North America, International, and AWS. Amazon targets three categories of customers: consumers, sellers, and website developers.

Amazon's market capitalization is a staggering $2.254 trillion, making it one of the largest e-commerce providers globally.

Here's a breakdown of Amazon's market presence:

  • Sector: Retail/Wholesale
  • Industry: Internet Commerce
  • Market Cap: $2,254.243B
  • Revenue: $637.959B

History

Amazon's history is marked by significant milestones, including its stock split history. Amazon executed its first stock split in June 1998, with a 2:1 ratio.

The split ratio used by Amazon in 1998 was 2:1, which halved the stock price. The price before the split was $85.68 on June 1, 1998.

Amazon's stock split history includes another split in January 1999, with a 3:1 ratio. This reduced the stock price by two-thirds.

The third and final stock split occurred in September 1999, again with a 2:1 ratio. The price before this split was $119.06 on September 1, 1999.

Broaden your view: Amazon Stock Split

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Here's a brief summary of Amazon's stock splits:

These stock splits were part of Amazon's strategy to make its shares more accessible to investors and increase liquidity as the company grew rapidly during the dot-com boom.

Historical Dividends

Amazon has a history of historical stock splits, with its first split occurring in 1998. The company carried out a two-for-one split on June 2nd of that year.

Amazon split its shares for the third time in 1999. This three-for-one split took place on January 5th of that year.

Amazon split its shares for the fourth time since its IPO in 1997. This split occurred in 1999, with a two-for-one split on September 2nd.

The successive splits during the dotcom bubble had a brief impact on the share price. Each split caused a rally as more people bought Amazon stock.

The stock price ultimately saw a comedown towards 2000. It took several years for the stock to rebound from this downturn.

Stock Splits

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Stock splits can make a stock more attractive to small investors by lowering the share price. This can be a strategic move by a company's management to signal confidence in its future growth prospects.

Companies typically pursue stock splits to improve liquidity, making it easier to buy and sell shares without significantly impacting the stock price.

Stock Split Information

Amazon's stock split came into effect on June 3, with the company's closing price on that day divided by 20 to accommodate for the increase in the number of shares.

The stock split reduces the price of a single share while maintaining the overall market capitalization of the company, making shares more affordable to the average investor.

Amazon's stock began trading on a split-adjusted basis on June 6, with investors receiving 19 additional shares of the company.

The stock split provides one avenue to alleviate bearishness for the group, and Amazon is also planning a $10bn share buyback along with the stock split, further increasing the value of its stock for investors.

Shares in Amazon rose 5.41% after the announcement, as those with the means to own Amazon stock got in ahead of retail investors.

Explore further: Sentinel One Stock Symbol

Understanding

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A stock split is a corporate action where a company divides its existing shares into multiple shares to boost the liquidity of the shares. This means the total market capitalization remains unchanged, but the reduction in stock price makes the shares more accessible to a broader range of investors.

Amazon's history with stock splits provides a window into its growth strategy and market perception over time. The company's first stock split in 1998 was a two-for-one split, which resulted in investors owning 400 shares after the split.

A stock split is primarily used when a company's share price becomes too expensive for many investors to buy. This makes it less attractive to investors, since a smaller number of investors will decide the outcome of the stock through their buying and selling decisions.

In 1999, Amazon's second stock split was a three-for-one split, which saw share prices go from $354.96 to $109.56. The stock closed at $138.00 the following day, showing that the reduction in stock price can have a significant impact on the market.

Stock splits are a rite of passage for many large companies, with Apple and Tesla being recent examples. Amazon is set to join this list with a 20-for-one split, which will make each share worth less but maintain the overall market capitalization of the company.

Take a look at this: Thin Capitalisation

Third Split: 2 September 1999

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Amazon's third stock split took place on 2 September 1999, which was another two-for-one split.

The split saw prices go from a 1 September close of $119.06 to a 2 September open of $57.50.

This was slightly less than half due to out-of-hours trading, resulting in a closing price on 2 September of $60.06.

A month later, on 1 October 1999, Amazon's share price had risen to $77.25.

The third stock split was a significant event in Amazon's history, demonstrating the company's growth and success.

Broaden your view: S B I Card Share Price

Stock Split Examples

Amazon's first stock split in 1998 is a great example of how stock splits work. The split was 2:1, meaning investors got an additional share for every share they already owned, resulting in 400 shares.

The share price before the split was $85.68, and immediately after the split, each share was worth $42.84. This is exactly half the original price due to the 2:1 ratio.

This stock split allowed investors to own more shares of Amazon, making it more accessible to a wider range of people.

Discover more: Buy Amazon Stock

Stock Example

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A stock split is essentially a way for companies to make their shares more affordable for investors.

Amazon's first stock split in 1998 is a great example of this. The split was 2:1, which means investors received an additional share for every share they already owned.

As a result, an investor who owned 200 shares of Amazon before the split would own 400 shares afterwards.

The share price before the split was $85.68, which dropped to $42.84 immediately after the split.

First: 1998

Amazon's first stock split took place on June 2, 1998, with a 2-for-1 split.

This decision came after a significant run-up in Amazon's stock price following its initial public offering (IPO) in 1997. By splitting its stock, Amazon aimed to make its shares more appealing and affordable to a broader investor base.

The split was two-for-one, meaning investors would have been issued an additional share for every share they already owned. As a result, the investor would own 400 shares of Amazon after the split.

Amazonian Tribesman
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Amazon's share price was $85.68 the day before the split, and it halved to $43.62 on the day of the event. This slight variation in price is due to out-of-hours trading.

A week after the split, Amazon's share price rose to $51.24, and a month later, it closed at $124.02. This sharp rise in the share price is indicative of the increased daily trading volume of Amazon stock, which went from around 8 million units to anywhere between 28 million to 54 million.

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Stock Split Implications

Amazon's stock split has significant implications for investors and the company itself. By analyzing these splits, investors can gain insights into Amazon's market strategy, investor appeal, and the potential future direction of its stock.

The stock split reduces the price of a single share while maintaining the overall market capitalization of the company. This makes the stock more attractive to small investors and improves liquidity, making it easier to buy and sell shares without significantly impacting the stock price.

The stock split is a strategic move that signals confidence from Amazon's management in its future growth prospects. Amazon's stock has performed well after its previous splits, reflecting the company's strong growth trajectory and market confidence. Historically, Amazon's stock has performed well after its splits.

Will Split Again?

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Amazon's stock split history is a fascinating topic, and its future implications are still up for debate. The company's last stock split was in September 1999, and since then, nothing has been done to control the price of Amazon's stock.

Jeff Bezos, Amazon's CEO, mentioned in 2017 that he wouldn't rule out another stock split, but it's not imminent. This has left investors wondering if Amazon will split its stock again.

A possible reason for Amazon to carry out a future stock split is to get a place on the Dow Jones Industrial Average. This is because Amazon's high share price would have a disproportionate influence over the weighted index.

Only four of the world's ten largest companies by market capitalization are currently included in the Dow Jones, so it may not be a strong motivator for a future Amazon stock split.

Implications of

Stock splits can be a significant event for a company, and Amazon's recent split is no exception. Historically, Amazon's stock has performed well after its splits, reflecting the company's strong growth trajectory and market confidence.

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Amazon's stock split on a 20-for-1 basis in June 2022 was a strategic move to make the stock more attractive to small investors. The company's management is looking to instil fresh confidence with this move, according to analyst Mould.

The lower share price can make the stock more appealing to a wider range of investors, including those with smaller portfolios. This can improve liquidity, making it easier to buy and sell shares without significantly impacting the stock price.

Amazon's shares were revalued at $120 per share after the split, and the company closed 2% higher on its first day of post-split trading. This is a promising sign for investors, but it's essential to remember that analyst predictions can be wrong and shouldn't be used as a substitute for your own research.

Amazon's management is also undertaking a $10 billion share buyback, which is the first direct distribution of cash back to shareholders since the company's 1997 stock market listing. This move may be seen as financial engineering rather than investment in the company's service proposition and competitive position.

Three

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Amazon has a history of stock splits, with three taking place between 1998 and 1999.

The first stock split occurred on June 2, 1998, with a 2:1 ratio, resulting in investors receiving an additional share for every share they owned.

Amazon's share price was $85.68 on June 1, 1998, meaning each share was worth $42.84 immediately after the split.

The stock climbed as much as 75% in the months following the operation.

Amazon shares fell from their high after the split, and investors had to wait about 10 years for the shares to truly take off.

The good news is that Amazon shares have soared more than 4,700% since their last split.

Stock Split Considerations

Amazon's stock price has been on a growth curve, with some traders believing it's making the stock inaccessible. Amazon's last stock split was in September 1999.

Jeff Bezos, Amazon's CEO, hasn't ruled out another split, but it's not imminent. A possible reason for Amazon to split its stock again is to get a place on the Dow Jones Industrial Average, where a high share price would have a disproportionate influence.

Only four of the world's ten largest companies by market capitalization are currently included in the Dow Jones, so it may not be a strong motivator for a future split.

First Split Removal

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Amazon's first stock split took place on 2 June 1998, a little over a year after its IPO. The split was two-for-one, which saw its share price halve.

The share price closed at $85.68 the day before the split and opened at $43.62 on the day of the event. This was slightly more than half of the closing price due to out-of-hours trading.

Amazon's share price rose sharply after the split, closing at $51.24 a week later on 9 June 1998. The daily trading volume of Amazon stock increased significantly as a result, going from around 8 million units at the start of June to between 28 million to 54 million at the start of July.

A month after the split, on 2 July 1998, the share price closed at $124.02, showing a substantial increase.

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Future Considerations

Amazon's stock split in 1999 was a significant event, and since then, there's been speculation about potential future splits. The tech giant's continued growth and high stock price have led to speculation about potential future splits.

Credit: youtube.com, What is a Stock Split? Different Types of Stock Splits, Examples and Implications

Amazon's financial strategies, including stock splits, are closely watched by investors as indicators of the company's outlook and investment potential. Investors are eager to see if Amazon will issue another stock split, which could make its stock more accessible to everyday investors.

A possible reason for Amazon to carry out a future stock split would be if it wanted to get a place on the Dow Jones Industrial Average. This is because Amazon's high share price would have a disproportionate influence over the weighted index.

Only four of the world's ten largest companies by market capitalization are currently included in the Dow Jones, so it may not be a strong motivator for Amazon to split its stock.

Stock Split Details

Amazon's stock split on June 2, 1998, was a 2:1 split, where investors received an additional share for every share they already owned, resulting in 400 shares of Amazon.

The split reduced the price of a single share from $85.68 to $42.84.

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Stock splits are primarily used to reduce the price of a single share, making it more accessible to investors.

A 4-for-1 stock split occurred in August 2020 with Apple, while Tesla split its shares in line with a 5-for-1 ratio.

Amazon will join this list with a 20-for-1 stock split, where investors will receive 19 additional shares.

The price of each share will be divided by 20 after the split.

Amazon's shares were revalued at $120 per share in early June, after trading above $2000 before the split came into effect.

The stock split resulted in a 2% increase on its first day of post-split trading at $124.80 on Monday, 6 June.

Shares had risen close to 8% in the five days leading up to the split.

Amazon's management is looking to instil fresh confidence with a 20-for-one stock split and a $10bn share buyback.

This is the first direct distributions of cash back to the company's shareholders since its 1997 stock market listing.

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Stock Split Summaries

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Amazon has had a total of three stock splits in its history. These splits took place within a relatively short 15-month time frame, from 1998 to 1999.

Amazon's first stock split was a 2:1 split in June 1998. This was followed by a 3:1 split in January 1999, and another 2:1 split in September 1999.

Since the last split, Amazon's stock prices have largely continued to rise. There's no indication that another split is imminent, but Jeff Bezos hasn't ruled it out entirely.

A potential motivator for another split could be if Amazon's share price rises to a level that would deter investors.

Cloud

Amazon's cloud business has been a significant factor in its success, but it's not directly related to the stock split. Amazon shares topped $3,600 in recent times, but a 20-for-1 stock split is expected to make the stock more accessible to a broader range of investors.

The stock split is interesting because it lowers the price of a single share, making it more appealing to those who don't want to invest thousands of dollars in just one stock.

Frequently Asked Questions

Was Amazon ever $3 000 a share?

Amazon's stock price surpassed $3,000 per share in late 2020, prompting the company to consider a stock split. This significant milestone marked a turning point in Amazon's growth and stock valuation.

What was the Amazon stock split?

Amazon's stock split was a 20:1 split, where investors received 19 additional shares for each share they owned, resulting in a share price jump of 5% to over $127.

Johnnie Parisian

Writer

Here is a 100-word author bio for Johnnie Parisian: Johnnie Parisian is a seasoned writer with a passion for crafting informative and engaging content. With a keen eye for detail and a knack for simplifying complex topics, Johnnie has established herself as a trusted voice in the world of personal finance. Her expertise spans a range of topics, including home equity loans and mortgage debt consolidation strategies.

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