Should You Sell Amazon After Its Stock Split?
After months of anticipation, Amazon (NASDAQ: AMZN) has finally split its stock 20 for 1. Many investors are excited about the opportunity to buy more of the e-commerce giant's shares at its new, significantly reduced price.
Yet experienced investors know that stock splits do not fundamentally alter the value of a business. They simply carve a company's profits into more slices. In many ways, Amazon's 20-for-1 split is like exchanging a $20 bill for 20 $1 bills. The value you hold before and after the split is the same.
Moreover, astute investors know that Amazon is facing a host of serious challenges that threaten to slow its growth and dent its profits. So, rather than buy, should you be thinking about selling Amazon's stock?
Source Fool.com
