Amazon.com Inc (NASDAQ:AMZN) announced plans for a 20-for-1 stock split and a share buyback of up to US$10bn, sending its shares around 7% higher in extended trading.
This is the first split since 1999 and the fourth split since the ecommerce giant’s initial public offering in 1997.
“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,” an Amazon spokesperson said in a statement.
The stock split is subject to approval by Amazon’s shareholders at the annual general meeting in May. The split shares would start trading on 6 June 2022, according to a filing.
The move follows an announcement of a 20-for-1 stock split by Google owner Alphabet Inc (NASDAQ:GOOG) last month. Tech giants Apple Inc (NASDAQ:AAPL) and Tesla Inc (NASDAQ:TSLA) announced splits in 2020, as markets surged during the COVID-19 pandemic.
Amazon shares were boosted early in the pandemic as online shopping soared, but the shares have declined since the start of 2022, along with other tech stocks.