Amazon Stock Split: 3 Reasons to Buy Shares and Hold Forever

Tech giant Amazon (NASDAQ: AMZN) recently announced a 20-for-1 stock split. If shareholders approve the measure in an upcoming annual meeting, Amazon should begin trading on a split-adjusted basis on June 6. While the move technically does not change the underlying strength of the company's business, shares were getting a bit steep, trading at nearly $3,000.

At the very least, Amazon's stock split will cut the stock price, making pieces of the company more accessible, especially to investors who are unable to purchase fractional shares. That being said, the company underperformed the S&P 500 over the past year. So, apart from the new stock price, why might everyday investors consider adding Amazon to their portfolio and holding for the long haul? Let's take a look.