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Amazon shares today will have 20 times more value due to a “split” approved by the shareholders of the leading company in the online market. This means that if you have shares in Amazon, now each one is multiplied by 20 and if you don’t, today you can buy it 20 times cheaper.
That is, while on Friday Amazon shares closed at $2,447 dollars, today Monday you can buy them from $120 dollars and the $128 dollars on average
This is the fourth “split” in the history of the online commerce giant and the first since 1999. The idea with this stock split is that they circulate at a reduced price to give opportunity to small investors.
What exactly is a “split”
It is when companies split their shares to give opportunity to small investors, which in turn increases the demand on them and creates more liquidity.
On the other hand, a good promotion is generated through the media that announce the “split” and that makes the company visible and generates curiosity among small investors.
For Amazon, it is a goal to enter the well-known “Dow Jones industrial average”, where the shares appear at the lowest cost. For example, Apple did something similar in 2014 and in 2015 it entered the Dow Jones.
So far, the all-time high for Amazon stock has been a price of $3,773. Although on Friday the closing was over $2,400, Today the shares of the great online trade opened at $124.24 dollars and the highest peak expected is $128.99.
During the last 24 hours the shares have traded positively by 3.32%. When this possibility of a “split” was announced last March, Amazon shares soared by 5.41%.
Just as Amazon and Apple have lowered their prices to enter the Dow Jones and attract more buyers, other technology giants such as Google and Tesla have also already done so.
Amazon has not had a good year, Like other companies within the technology category, its shares have plummeted on the Stock Exchange in 2022. For the great of online commerce, we are talking about a cumulative drop of 30%.
In this sense, Jeff Bezos, founder of Amazon, recently criticized the current administration, assuring that the government of Joe Biden is not doing what is right to combat inflation. At the same time, Biden called for combating inflation by making “rich corporations” pay more.
Yet despite US inflation, Amazon has become the main option for many consumers in the country, even above big box retailers like Walmart. Experts predict that by 2024, Amazon could be the number one retailer in the US market, due to its expansion in food stores and rebound in technology sales.