Amazon shares jumped following the announcement of a stock split. The company revealed plans for a 20-for-1 stock split, alongside a $10 billion share repurchase program.

Stock Split Details

The stock split, subject to shareholder approval, will make Amazon’s shares more affordable for individual investors. Each shareholder of record at the close of business on May 27, 2024, will receive 19 additional shares for every one share held. Trading will begin on a split-adjusted basis on June 6, 2024.

Impact and Analysis

Analysts believe the stock split could lead to increased trading volume and potentially attract new investors. The lower share price makes it easier for smaller investors to participate in Amazon’s growth.

Share Repurchase Program

In addition to the stock split, Amazon announced a $10 billion share repurchase program, signaling confidence in the company’s future performance. Share repurchases can boost earnings per share and return value to shareholders.