Amazon Split and Buyback Could Deliver Much-Needed Liftoff
- Announces 20-for-1 stock split, $10 billion stock repurchase
- Analysts positive on the move; split could draw retail traders
Packages move along a conveyor at an Amazon fulfillment center in Robbinsville, New Jersey, U.S.
Photographer: Michael Nagle/BloombergThis article is for subscribers only.
A stock split and a massive buyback could just be the boost Amazon.com Inc. needs to break out of a spell of prolonged share price weakness.
Amazon said late Wednesday it intends to boost its outstanding shares by a 20-to-1 ratio, the e-commerce giant’s first stock split in more than two decades. That news, combined with a $10 billion share-buyback proposal, saw the stock advance 5.4% on Thursday, even as other mega-caps fell. Trading on a split-adjusted basis is expected to begin on June 6, according to a company filing.