It's the company's first stock split since the dot-com boom in 1999.
Background: Amazon has been through a few changes lately. The Big Bad Bezos stepped down as CEO... its stock price ain't doing too well... and it's back-peddling from its bricks-and-mortar strategy.
What happened: Now, Amazon is launching a $10 billion share buy-back as well as a 20-for-1 stock split. Its first stock split since 1999.
What else: Amazon is trying to turn things around and instil some fresh confidence in shareholders. It kinda worked, too. The company's shares went up around 6% on the news.
💡A stock split is when a company's board of directors decides to divide an existing share into multiple shares.
💡But this doesn't fundamentally change anything about the company. Put simply, rather than each share being worth $100, a 20-for-1 stock split will create 20 shares at $5 each.
💡But generally, it's a good thing in the long run because it makes the stock more accessible to new investors.
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