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Amazon’s (AMZN) stock popped more than 4% during its first day of trading since splitting its shares 20-for 1.
In March, the e-commerce giant announced investors would receive 19 additional shares for each one they owned on a split-adjusted basis. Since the announcement, shares of Amazon were down about 12% (as of Friday’s close) amid an overall broader market downturn.
This is the fourth time Amazon has split its stock since going public in 1997.
The move does not change the value of the stock or the company’s market capitalization at the time of the split. It’s seen as a cosmetic enhancement to attract retail investors and make the company more likely to become a candidate for entry into the Dow Jones Industrial Average. The move also makes shares more accessible to options traders.
Amazon is the latest big-cap name to split its shares the last several years. Tesla (TSLA) split its shares 5-for-1 in August 2020. In March, the electric vehicle maker proposed a second stock split. Tech giant Apple (AAPL) split its stock 4-for-1, in 2020.
Alphabet (GOOGL) shares will begin trading on a 20-for-1 split adjusted basis on July 15.
In April, Shopify (SHOP) announced a 10-for-1 split. The Canadian e-commerce company’s stock has performed far worse than Amazon or the other big cap names. Shopify’s stock closed an all time high of $1690 in November. Shares are down 78% from that level.
Ines is a markets reporter covering equities. Follow her on Twitter at @ines_ferre
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