Good evening Tech Rookies! Exciting news of Amazon deciding to conduct a stock split. This means cheaper shares for Tech Rookies.
On Wednesday, Amazon announced its first stock split since the dot-com era, promising investors 20 shares for every share they now possess. In extended trade, the stock jumped 6%.
The board also allowed the corporation to repurchase up to $10 billion in stock, according to the company.
Stock splits are purely superficial and have no impact on the company’s operations, except for maybe making the shares more accessible to a wider number of investors due to their lower price.
If the split were to take place as of Wednesday’s closure, the price of each share would drop from $2,785.58 to $139.28, and existing shareholders would receive 19 more shares for each one they now own.
Amazon is a great tech giant company to invest in
As tech companies continue to be valued at an all-time high, it’s not surprising that they are starting off with some major splits. In February of this year, Google parent company Alphabet announced a 20 for 1 stock split which is now history as well!
Apple had also planned on doing their own four against one ratio before announcing mid-2020 plans for five times more shares being sold at once – exciting news indeed!!
In addition, Tesla has informed investors about instituting yet another 5:1 mix launch later next week.
There are many reasons why Amazon is a good company to invest in. For one, the company is highly profitable and has been consistently profitable for many years. In addition, Amazon has a strong brand name and is one of the most recognizable companies in the world. This strong brand recognition helps Amazon attract customers and keep them loyal.
Amazon is also a fast-growing company, and its revenues and profits continue to grow at a rapid pace. Finally, Amazon is a very innovative company, and it constantly launches new products and services that help it stay ahead of the competition.
All of these factors combine to make Amazon a very attractive investment opportunity.
Amazon Stock will be Affordable Now!
“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,” a spokesperson said in a statement.
Amazon is a good long-term investment because it is a profitable and growing company with a strong brand name. Amazon has been profitable for many years, and its profits continue to grow at a rapid pace.
In addition, Amazon is constantly launching new products and services that help it stay ahead of the competition. These factors make Amazon a safe investment choice for the long term.
Amazon has been an incredible investment for investors this year. The world’s largest e-commerce company is also a great way to play the cloud computing space, and it just reported record-setting quarterly results that have sent its stock up nearly 10%.
I predict AMZN will deliver 30% gains by 2022 – so hurry before they start selling out!
The Botton Line and Final Thoughts
Amazon has been having trouble keeping up with its e-commerce growth, but it looks like things are finally turning around. The company announced that they will be increasing the price of Prime membership for Americans which should help them generate more revenue in addition to offsetting some cost increases from labor issues and inflation on supplies.
It’s no wonder that Amazon is taking a more integrated approach to marketing with its own label. The company has been able to accommodate 43% growth in North America while running up against slowing competition from other retailers like Walmart and Target!
I personally think Amazon is a good long-term investment, especially after the stock split.
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Disclaimer: This article is for information purposes and should not be considered professional investment advice. It contains some forward-looking statements that should not be taken as indicators of future performance. Every investor has a different risk profile and goals. All investments have risks. Always do your own research or hire an expert before investing and trading in the stock market.
