Amazon.com said on Wednesday its board approved a 20-for-1 split of the e-commerce giant’s common stock and authorized a $10 billion (roughly Rs. 76,180 crore) buyback plan, sending the company’s shares up 7 percent in extended trading.
This is the first stock split by Amazon since 1999 and will give investors 19 additional shares for every share they hold. Trading based on the new share price will begin on June 6.
Amazon’s stock, which closed at $2,785.58 (roughly Rs. 2,12,000) on Wednesday, has nearly doubled over the last two years, when demand for both its e-commerce and cloud computing business surged in the wake of the COVID-19 pandemic.
“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.
The stock buyback replaces the previous $5 billion (roughly Rs. 38,000 crore) stock repurchase authorised by Amazon’s board in 2016, under which the company had repurchased $2.12 billion (roughly Rs. 16,000 crore) of its shares.
© Thomson Reuters 2022