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Amazon announces 20-for-1 stock split, $10 billion buyback 

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Amazon on Wednesday said its board of directors has approved a 20-for-1 stock split.

It’s the first split since 1999 and the fourth since Amazon’s IPO in 1997.

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The company also said its board has authorized Amazon to buy back up to $10 billion worth of shares.

Amazon announced its first stock split since the dot-com boom, 

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telling investors on Wednesday that they’ll receive 20 shares for each share they currently own. The stock soared 6% in extended trading.
The company also said the board

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authorized it to buy back up to $10 billion worth of shares.

Stock splits are cosmetic and do not fundamentally change anything about the company, other than possibly 

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making the shares accessible to a larger number of investors because of their cheaper price.

Were the split to happen as of Wednesday’s close, the cost of each share would go from

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$2,785.58 to $139.28, and each existing holder would get 19 additional shares for every one they own.
Amazon is the latest highly valued tech company to pull down

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the price of each share through a split. Google parent Alphabet announced a 20-for-one split in February. In mid-2020, Apple disclosed plans for a four-for-one split, and Tesla told

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investors it was instituting a five-for-one split

CEO Andy Jassy has faced a rough start to his tenure which began in July The stock was the worst performer among Big Tech companies last year

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and has dropped 16% so far in 2022, joining a decline across the sector. Amazon just reported its slowest rate of growth for any quarter since 2001 and, according to a recent Wall Street

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Journal report billionaire activist investor Dan Loeb whos been adding to his Amazon holdings told investors on a private call that he sees about $1 trillion in untapped value at the company