![]() There are a lot of factors that play into these kinds of rumors, especially now that people use social media to talk about the market. Why Amazon stock split rumors are swirling Pre-1998 investors would have 12 times the number of shares they originally purchased pre-split. Investors should always keep in mind that past returns don’t guarantee future results, even when those past returns are as wild as this.ĪMZN stock split history dates back more than two decades, with three splits in total:Īll three of these splits occurred in just a 15-month period. Looking at the full 24-year chart shows massive momentum, with total lifetime returns amounting to 196,952.6%. Amazon’s last stock split was more than two decades agoĬEO Jeff Bezos founded Amazon in 1994 and took the company public less than three years later at a starting price of $18 per share. Recent talk about a potential split has only fed this flurry. Such is the case with AMZN shares after the Amazon stock split rumors began.Īmazon stock has been particularly bullish in the eight weeks since March 8, when the stock increased 15.5% from its lowest point in months. When calls occur at a higher rate than puts, it’s clear that the public is rooting for a stock. Puts occur when options traders expect a stock to decrease to a lower strike price than the current market value. This means they expected shares to increase to a specific strike price. Last week, options traders were placing calls at a higher volume than normal. Despite that, Amazon stock split speculation is front and center in the marketplace.īeyond just listening to the analysts, you can actually visualize this speculation. This action can also take the form of a reverse stock split, which increases the price per share for penny stocks trying to increase their perceived value or stay listed on an exchange.Īmazon has not announced a stock split. Common ratios for splits include 4-for-1 and 8-for-1 (and sometimes even higher). Each share’s market value decreases by the same ratio in which the number of total stocks increases.Įach stock split has a split ratio, which can look like 2-for-1 (or 2:1).Ī 2-for-1 split would give shareholders two shares for every one share they previously held. An investor may have initially purchased 100 shares but now has more due to the stock split. This corporate action increases the number of shares while simultaneously decreasing the price per share.įor shareholders, the total value of the position stays the same. ![]() When shares for a public stock start to get expensive, the company may be inclined to split the stocks by a certain ratio. Investors are keeping their eyes on the stock to see if the legitimacy of the rumors changes. The company hasn’t commented on whether or not there will be an AMZN stock split in 2021. ![]() ![]()
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