Should You Buy Amazon Before Its Stock Split?
Last night, Amazon (NASDAQ: AMZN) announced that it would be splitting its stock 20-for-1, the first time this $3,000 stock has split its shares since September 1999! In conjunction with the stock-split announcement, Amazon also upped its share repurchase program to $10 billion, from the $5 billion program that had been in place. On the announcement, Amazon shares soared nearly 7% in after-hours trading Wednesday.
So, should investors follow management's hint and buy shares ahead of the split?
Amazon's move had been a topic of conversation among investors ever since CEO Andy Jassy took over the reins from founder Jeff Bezos last summer, and more recently after FAANG competitor Alphabet (NASDAQ: GOOG) (NASDAQ: GOOGL) announced its own stock split back in February.
Source Fool.com
