Amazon jumps as online retail giant completes first stock split since 1999

“This split would give our employees more flexibility in how they manage their capital in Amazon and make the stock price more accessible to people looking to invest in the business,” the company said in a statement shared with FOX. Business.

Shares of Amazon was trading at around $126.71 as of 11:15 a.m. ET Monday.

Amazon has not been spared the carnage in the tech sector this year amid a broad stock sell-off. Even after Monday’s jump, shares of the e-commerce giant are down about 8% since announcing plans to split its shares in March.

With the split, the company will seek a $10 billion share buyback plan, replacing its $5 billion plan from 2016. Amazon is currently the fifth most valuable company in the world by market capitalization.

Stock splits do not change a company’s fundamentals or significantly impact a company’s prospects, but they have been shown to generate excitement among retail traders who might have feeling left out of a stock when the stock price was higher.

Alphabet proposed a stock split in February. In March, Tesla announced it would seek shareholder approval for its own stock split so it could pay a stock dividend. The Electric vehicle maker jumped 7% on March 28 on the news.

Anne G. Cash