Amazon splits stock 20-for-1, reports $10-billion share buyback3Photo© gadgets360.com

Amazon splits stock 20-for-1, reports $10-billion share buyback

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Amazon.com is planning to split its stock for the first time in more than two decades in a move that will end an era of four-digit stock prices for the biggest US technology companies.

Amazon intends to boost its outstanding shares by a 20-to-1 ratio, under a plan disclosed on Wednesday, joining other technology giants like Alphabet and Apple who have turned to splits to make their stocks more attractive to retail investors. That news combined with a $10 billion share-buyback authorisation sent Amazon shares up as much as 5 per cent intra day on Thursday.

As Amazon’s stock price has ballooned over the years, speculation about a potential split has been a frequent subject of speculation, which was only heightened by Alphabet’s proposed 20-for-1 split disclosed last month. Amazon conducted three splits in the 2 1/2 years following its 1997 initial public offering and then halted the practice. The topic occasionally came up at Amazon shareholder meetings but the company hadn’t taken action until now.