Amazon (AMZN) Stock Split : Strong Buy Forecastedš
In an SEC filing, Amazon says the split will take place āon or about June 3, 2022ā for shareholders of record by May 27, 2022. (That means if you owned shares on the last Friday in May, they'll split on the first Friday in June.) AMZN will begin trading at its new split-adjusted price on Monday, June 6, 2022.
As Amazon (NASDAQ:AMZN) -2.60% approaches its next stock split, there is one question on everyoneās mind: will the split launch a new wave of gains?
Amazon stock has impressed investors over time ā rising over 1,500% in the last ten years. But in recent times, performance has been mediocre. For example, Amazon ended the previous year with little changed.
Amazon is not new to stock splits. The retail giant has held three of them in the past. They were all in a brief period almost two decades ago.
The next stock split May offer some clues as to what might happen, analysts considered the last three developments below. Each of them tracks stock performance in the six months following stock splits.
1. First stock split
Amazonās first stock split took place on June 2, 1998. Amazon stock rose in the three months following the break, then returned some of the gains before advancing further. Over the entire six-month period, the stock has jumped more than 300%.
2. Second stock split
The companyās second stock split took place on January 5, 1999. The stock immediately rose ā then sank. A few months later, he gained some momentum but ended the six months with little changed.
3. Third Share Split
Finally, Amazonās third stock split was on September 2, 1999. Following the first stock split pattern, the stock rose in the first three months after the trade. Then it fell ā and didnāt recover much. At the end of the semester, the stock had only increased by about 4%.
What Does This Mean For Investors?
Should investors be worried after seeing mediocre performance after two of the three previous divisions? Not if youāre a long-term investor, according to analysts.
The only performance linked to the actual split is in the concise term. That is due to new investors entering the stocks or current investors adjusting their positions in the days following the break.
Beyond that point, any gains or losses are not due to the stock split itself. Instead, theyāre likely tied to company news ā or whatās happening in the economy and how it might affect the company.
Itās also worth noting that Amazon was a very different company in the late 1990s and early 2000s. Two critical parts of Amazon didnāt yet exist. Of course, Iām talking about the Prime subscription service and Amazon Web Services. They were released in 2007 and 2006, respectively.
Itās good to look at the above data and understand how Amazon performed after its previous stock splits. After all, itās part of the companyās overall history. And more importantly, it shows us that stock splits do not drive a stockās performance over time.
Disclaimer: Investing carries risk. This is not financial advice. The above content should not be regarded as an offer, recommendation, or solicitation on acquiring or disposing of any financial products, any associated discussions, comments, or posts by author or other users should not be considered as such either. It is solely for general information purpose only, which does not consider your own investment objectives, financial situations or needs. TTM assumes no responsibility or warranty for the accuracy and completeness of the information, investors should do their own research and may seek professional advice before investing.
$Amazon.com(AMZN)$
In a statement about the quarterly results, Amazon CEO Andy Jassy said the company is focused on improving productivity and cost efficiencies, but that this will take time as Amazon continues to address inflationary and supply chain pressures.
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āThe pandemic and subsequent war in Ukraine have brought unusual growth and challenges,ā said Jassy. "Today, as weāre no longer chasing physical or staffing capacity, our teams are squarely focused on improving productivity and cost efficiencies throughout our fulfillment network. We know how to do this and have done it before. This may take some time, particularly as we work through ongoing inflationary and supply chain pressures, but we see encouraging progress on a number of customer experience dimensions, including delivery speed performance as weāre now approaching levels not seen since the months immediately preceding the pandemic in early 2020.ā
$Amazon.com(AMZN)$
Amazon's first-quarter 2022 earnings call is scheduled for April 28, and many investors are tuning in to see if the e-commerce giant deserves a spot in their portfolio. Last month, Amazon's board of directors gave the company the green light to do a 20-for-1 stock split. This move sparked a lot of excitement among investors since the company hasn't done a split since the dot-com boom.
If you've got some extra cash tucked away in your Roth IRA (individual retirement account), you may wonder if you should load up on shares of Amazon. But before you dive in, you should do your research on the underlying business and determine if it makes sense to add the company to your retirement portfolio.
$Amazon.com(AMZN)$
The Nasdaq Composite stock index has undergone its heaviest one-month sell-off since the depths of the global financial crisis, as concerns about rising interest rates and slowing economic growth were exacerbated by softer business updates from tech giants such as Amazon, Apple and Netflix.
The tech-dominated index sank 4.2 per cent on Friday following lacklustre results by Amazon and Apple the previous evening. The move brought the Nasdaqās April fall to 13.3 per cent, the worst monthly decline since October 2008, after the collapse of Lehman Brothers had rocked financial markets.
$Amazon.com(AMZN)$
Amazon Buys Roomba (IRobot)
Seattle-based Amazon has come a long way as a hardware player since a failed foray into smartphones a few years ago, working diligently to place the Alexa voice software and Echo smart speakers at the center of the burgeoning market for smart-home gadgets. Spoken Alexa commands can already control many other devices, from smart ovens to light bulbs and Roomba vacuums. The partnership between Amazon and IRobot extended beyond devices, too: IRobot runs some of its software on Amazon Web Services servers.
IRobot gives Amazon a household-name in home cleaning gadgets that may give it a leg up over its own designs. Last fall Amazon debuted a household robot that was supposed to usher ināor at least point toāa Jetsons-like future. Called the Astro, the three-wheeled device would eventually sell for about $1,450. But Astro, still in a limited rollout, hasnāt made a splash with consumers
$Amazon.com(AMZN)$
Worth the wait until June 2022.
Shares of Amazon have given up nearly all of their gains from the pandemic.
The stock closed at $2,177.18 on Tuesday, up just .06% from Monday. The last time Amazon traded around these prices was on Feb. 20, 2020, when the stock reached an intraday high of $2,176.79. That's before the name dipped in March 2020 along with the rest of the market during the initial pandemic uncertainty in the U.S. It's more than 40% off from the company's 52-week intraday high of $3,773.08, which it hit July 13, 2021.
$Amazon.com(AMZN)$
Watch out for Amazon's legendary 2022 Stock Split - Buy AMZN on 6th June 2022!
For example, todayās stock price for Amazon is $2,302 a share. After the stock split, investors would pay $115 per share.
āThe Board anticipated that the increase in the number of outstanding shares resulting from the stock split will reset the market price of the common stock, in a range that would give our employees more flexibility in how they manage their equity in Amazon and make the common stock more accessible for anyone who wants to invest in Amazon,ā the company said in a proxy filing.
Amazon said in a Securities and Exchange Commission (SEC) filing in March, that if approved, at the close of business on May 27, 2022, each shareholder will have 19 additional shares for every one share held as of such date reflected in their accounts on or about June 3, 2022. Trading is expected to begin on a split-adjusted basis on June 6, 2022, according to the SEC filing.
$Amazon.com(AMZN)$
Amazon Global Updates
E-commerce giant Amazon.com, Inc. (NASDAQ: AMZN) is in talks to acquire over 51% stake in logistics firm Ecom Express Ltd for $500 million-$600 million, India's Mint newspaper reported, citing sources.
What Happened: The development follows Amazonās efforts at building an in-house logistics division, as per the report.
Ecom Express is an end-to-end technology-enabled logistics solutions provider to the Indian e-commerce industry, according to the firmās website. It has a presence in all 29 states of India and operates in over 2,650 towns.
$Amazon.com(AMZN)$
Latest News : Buy Target Price $2,200
Amazon Web Services (AWS) grew revenue by 37% to $18.4 billion in the first quarter. Its operating income increased by an even more impressive 57%, to $6.5 billion. Remarkably, AWS was able to grow its sales at an extraordinary pace and expand its profit margins despite Microsoft's and (Alphabet-owned) Google's best efforts to wrestle away market share.
With its shares down sharply following its post-earnings swoon, much of the near-term risks to Amazon's e-commerce operations are now reflected in its stock price. Amazon's current share price also likely understates its enormous long-term opportunity in cloud computing. For these reasons, now seems like a good time to consider building or adding to a position in Amazon.
Investing in high-quality businesses when they're on sale is a proven way to build wealth in the stock market -- and buying shares of Amazon today could help you do just that.
$Amazon.com(AMZN)$
Amazon.com Inc. and Apple Inc. added about $196 billion in market value on Friday after they joined technology peers Alphabet Inc. and Microsoft Corp. in assuaging investor concerns by reporting higher revenue even as consumers curb their spending amid rising inflation.
Amazon shares jumped 10%, their biggest move since February, while Apple advanced 3.3%. The gains helped power a 1.8% rally by the Nasdaq 100 Index, locking in its best monthly performance sine April 2020. Amazonās 27% surge in July was its biggest October 2009, while Appleās 19% move was the best in nearly two years.
$Amazon.com(AMZN)$
E-commerce giant Amazon (AMZN) on Friday announced an agreement to buy iRobot (IRBT), maker of home-cleaning robots such as Roomba vacuums, for $1.7 billion in cash. Amazon stock dipped in morning trading while iRobot stock rocketed.
$Amazon.com(AMZN)$
Amazon.com Inc delivered a disappointing quarter and outlook on Thursday as the e-commerce giant was swamped by higher costs to run its warehouses and deliver packages to customers.
Shares fell 9% in after-hours trade.
$Amazon.com(AMZN)$
Jefferies reduced the price target on Amazon.com from $3,700 to $3,250. Amazon shares rose 3.7% to close at $2,302.93 on Friday.
European markets started the month of May on a weaker footing, with investors monitoring monetary policy, inflation data, and sharp moves on Wall Street.
$Amazon.com(AMZN)$
If you buy Amazon (AMZN) at $105 you are one happy somofagun
$Amazon.com(AMZN)$
Strong Buy at $2,200 levels