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20-for-1 stock split for Amazon

Miguel A. Rodriguez
Miguel A. Rodriguez
16 March 2022
Amazon revealed that its board approved a 20-for-1 stock split and authorized a $10 billion buyback plan

This marks Amazon’s first stock split since 1999 and its fourth since its IPO in 1997. The split will give investors 19 additional shares for every share they hold. The company’s stock, which closed at $2,785.58 on Wednesday, has almost doubled over the last 2 years, as demand for e-commerce and cloud computing business surged due to the pandemic. Amazon’s shares are up more than 4,300% since the last split was announced.

According to an Amazon spokesperson, the split will give the company’s employees more flexibility in how they manage their equity in Amazon, as well as make the price more accessible to people who are looking to invest in the company. 

The split will undergo shareholders’ approval in May, and if it passes, the split will go into effect on June 6.

Amazon’s move can also be aimed at getting included in the Dow Jones Industrial Average, which tends to include less expensive stocks. Amazon’s split is no guarantee that the company will be included in the index, but the Dow may want the world’s most valuable retailer and a major cloud provider, as well as a media giant.

As far as the $10 billion buyback program is concerned, it replaces the previous $5 billion stock repurchase authorized by the company’s board in 2016. Under it, Amazon had repurchased $2.12 billion in shares.

At the moment of writing, Amazon’s stock price was trading 4.72% higher.


This information/research prepared by Miguel A. Rodriguez does not take into account the specific investment objectives, financial situation, or particular needs of any particular person. The research analyst primarily responsible for the content of this research report, in part or in whole, certifies that the views about the companies and their securities expressed in this report accurately reflect his/her personal views and consequently any person acting on it does so entirely at their own risk.The research provided does not constitute the views of KW Investments Ltd nor is it an invitation to invest with KW Investments Ltd. The research analyst also certifies that no part of his/her compensation was, is, or will be, directly, or indirectly, related to specific recommendations or views expressed in this report.The research analyst in not employed by KW Investments Ltd. You are encouraged to seek advice from an independent financial adviser regarding the suitability of the investment, under a separate engagement, as you deem fit that conforms to your specific investment objectives, financial situation, or particular financial needs before making a commitment to invest. The laws of the Republic of Seychelles shall govern any claim relating to or arising from the contents of the information/ research provided. 

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Miguel A. Rodriguez
Miguel A. Rodriguez
Financial Writer

Miguel worked for major financial institutions such as Banco Santander, and Banco Central-Hispano. He is a published author of currency trading books.