Can Amazon's Stock Split Launch a New Era of Gains?
Amazon's (NASDAQ: AMZN) last stock split was back in 1999. That was before the launch of its subscription service, Prime, and before the start of its profit driver, Amazon Web Services (AWS). These two elements helped boost Amazon -- to a gain of more than 7,700% in a period of 14 years.
The retail giant recently announced a 20-for-1 stock split. The split is set to happen in June. This doesn't change the market value of the company. But it brings the value of each share down. And that makes it easier for a broader range of investors to buy the stock. Could this operation launch a new era of gains? I think so. Not because of the operation itself, but because of elements in the following two charts.
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Source Fool.com
