Amazon’s Stock Split Explained [$AMZN]

Amazon's Stock Split Explained [for any new investors, or investors of $AMZN]:

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• Amazon is the latest tech giant to announce a stock split, following Apple, Tesla, and Google.
• This is Amazon's first stock split in over 20 years, and historically, stock split announcements have often triggered short-term rallies
• Amazon's 20-for-1 stock split means that you’ll receive 20 shares for each share you currently own
• Today, one share of Amazon stock is about $3,000, which means, the price would drop to around $150 per share
• Mathematically, stock splits don't create any “new value” for owners, or fundamentally change anything about a company. Stock Splits are a marketing maneuver, aimed at making a high-priced stocks more attractive to retail investors, who might consider buying it. Stock splits also make options contracts more affordable for retail investors.
• My prediction is that Amazon will also be added to the Dow Jones Industrial Average. Apple, announced a 7-for-1 stock split in 2014, which brought it from over $600 a share, to less than $100 per share, and it joined the Dow in 2015.
• Adding high-priced shares to the Dow is problematic because the index is price weighted, meaning the same percentage move matters more for a high priced stock than a low priced one.
• This is Amazon's first stock split since 1999, and the fourth since Amazon’s IPO in 1997. Amazon did a 2-for-1 split on June 2, 1998; a 3-for-1 split on Jan. 5, 1999; and a 2-for-1 split on Sept. 2, 1999.
• Amazon shares are up over 4,300% since the last split was announced.
• Google announced a 20-for-one split in February, Apple announced a 4-for-1 split in August 2020, Tesla announced a 5-to-1 split on August 2020 (Nvidia announced a 4-to-1 split in July 2021.)
• AMZN will begin trading at its new split-adjusted price on Monday, June 6, 2022.