Amazon Stock Split: The Real Reason It Matters
Investors cheered Thursday when Amazon (NASDAQ: AMZN) announced a 20-for-1 stock split.
Investors had long wondered whether Amazon, whose share price is currently around $3,000, would finally split its stock, especially after high-profile tech stocks like Apple, Tesla, and Alphabet all did the same. Amazon had not done a stock split since 1999, in the heady days of the dot-com boom. After 23 years the per-share price will be chopped to roughly $150.
The stock split, which is scheduled to go through on June 6, does nothing to change the value of the stock -- shares will just be divided into smaller pieces. Though some investors see a stock split as an important milestone, it doesn't change anything about the valuation or the fundamentals of the business.
Source Fool.com
