With the recent stock split by Tesla and Apple, financial experts are predicting the next tech giant that will undergo a similar strategy. Looking purely at the numbers, history, and trends, Amazon could be the next major split to occur. While every Amazon investor knows it has been a long time since the company has pursued a strategy like this, it may make sense for them to do so soon. With Amazon having a price-per-share of more than $3,100 and an over $1.5 trillion in market cap, the company has plenty of options. We’ve taken a look at what would happen if Amazon’s stock split today and why it may make sense for it to do so.
What Would Happen If Amazon’s Stock Split?
Most financial experts believe a stock split for Amazon would not impact the company negatively in terms of market capitalization. In fact, the company could split its stock 10-for-1 and likely only experience benefits instead of any downsides. Doing so could make Amazon’s stock more attractive for a new investor, or an investor who can’t afford the hefty price it’s sitting at today. And with the potential for more investors taking advantage of the low share cost, the company’s valuation could experience a significant jump just like Tesla’s and Apple’s did following their recent stock split.
Amazon Has Split Its Stock In The Past
It has been more than 20 years since Amazon split its stock. At that time, Amazon made a 2-for-1 stock split and saw its valuation soar ever since. Many factors contribute to Amazon’s valuation being so high, but it’s hard to ignore the fact that the company’s initial split-adjusted share price was about $23 per share. Investors should look closely at the stock futures for Amazon since market conditions appear to be favorable for an upcoming stock split. However, due to Amazon’s lack of making such significant moves like this in recent times, it’s difficult to predict whether a split will happen for certain.
Splitting Stock Makes Sense For Amazon
The high price of a share of Amazon stock is too high for the average investor. However, a stock split could make the price more affordable, which means more investors and a potentially higher company valuation. Today, large tech companies are more willing to split their stock than ever before, so it’s worth keeping an eye out for Amazon. Many financial experts agree that now is the time for Amazon to split its stock, so time will tell whether they make the move or not.
At Stock Investing Info, we watch the markets closely to help investors increase their financial knowledge to boost their portfolio. Apple and Tesla’s recent stock splits got many investors thinking about how Amazon doing the same would impact stock futures. While a move from Amazon doesn’t appear to be imminent, it would not be surprising to see a stock split in the next several months once it’s clear how a similar move impacts the other tech giants. We will always keep an eye on these developments, so contact us at any time for updates or advice.