Amazon announced its first stock split since the dot-com boom on Wednesday, telling investors that they will receive 20 shares for each share they currently own. The stock went up in extended trading.
The company said it would buy back up to $10 billion worth of shares.
Stock splits do not fundamentally change anything about the company, other than possibly making the shares accessible to a larger number of investors because of their cheaper price.
The cost of each share would go from $2,785.58 to $139.28 if the split happened as of Wednesday.
The price of each share of Amazon will be reduced through a split. A 20-for-one split was announced in February. In the year 2020, Apple revealed plans for a four-for-one split, andTesla told investors it was instituting a five-for-one split.
Andy Jassy had a rough start to his tenure. The stock was the worst performer among Big Tech companies last year and has dropped 16% so far in 2022, joining a decline across the sector.
The shares will be distributed to Amazon shareholders at the close of business on May 27 and trading will begin on a split-adjusted basis on June 6.
CNBC's Ari Levy contributed to the report.
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