3 Reasons to Buy Amazon Stock (After the Stock Split)
Down 29% year to date, the Nasdaq Composite index is in a bear market, making now a potentially good time to bet on quality companies trading for cheap. Fresh off its much-anticipated 20-for-1 stock split, Amazon (NASDAQ: AMZN) might fit the bill. Here are three reasons the e-commerce giant looks poised for long-term success.
A stock split is when a company divides its share count by a predetermined amount without changing its market cap (the value of all the shares outstanding). Although stock splits don't impact fundamentals, they make shares cheaper and more psychologically appealing for smaller investors. That said, Amazon's June 6 stock split comes at the tail end of a massive 35% year-to-date decline. So (in this case, at least), the stock is now relatively cheaper in both price and valuation.
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Source Fool.com
