Amazon's Stock Split Has Taken Effect. Now What?
Amazon has a new share price, but investors' approach should stay the same.
Back in March, e-commerce giant
Amazon (AMZN 3.79%)
announced that it would
conduct a 20-for-1 stock split, and in May, shareholders voted to approve it.
The split has now officially taken effect, but what has actually changed?
For every Amazon share that previously existed, 20 have taken its place.
In turn, the price of each Amazon share has shrunk in proportion.
One share of Amazon traded at $2,447 last Friday prior to the split,
so dividing that number by 20 means the new share price is $122.35.
But the market valuation of Amazon has remained the same, at $1.2 trillion, which makes the stock split entirely cosmetic.