Amazon Soared at Least 48% After Each of Its Last 3 Stock Splits: Can the Stock Do It Again?
Amazon.com (NASDAQ: AMZN) knows that it can't set the prices for the products it sells too high. If it did, the company would limit its opportunity because some consumers wouldn't be able to afford its products.
This same concept applies to Amazon's stock price as well. With the internet giant's shares trading above $3,300, many investors can't afford to even buy one share. That's why Amazon announced last month that it plans to do a 20-for-1 stock split.
If history is any guide, this could prove to be a smart move for the company. Amazon's shares soared at least 48% in each of its last three stock splits. Can the stock do it again?
Source Fool.com
