Amazon (NASDAQ:AMZN) is about to kick off the summer of stock splits. The e-commerce giant is gearing up to split its stock on June 3 after months of anticipation. As can be expected, the momentum surrounding this important event is pushing AMZN stock up today. Investors are excited and watching closely as Amazon gets ready to enact a 20-for-1 stock split.
AMZN stock has seen some turbulence today but it remains in the green. As of this writing, it is up almost 2% for the day and isn’t showing signs of slowing down.
Let’s take a closer look at the Amazon stock split and what investors should be watching for.
Stock Split Summer
One of this summer’s defining market trends promises to be the number of companies planning stock splits. Seven noted names in the tech sector anticipate splitting their stocks in the coming months, pending shareholder approval. GameStop (NYSE:GME) shareholders will vote on the proposed stock split on June 2. One day later, Amazon’s split will commence. Its shareholders have already voted in favor of the split.
As InvestorPlace writer Shrey Dua reported:
“Amazon is the latest major tech company going forward with a stock split. Companies like Apple (NASDAQ:AAPL), Alphabet (NASDAQ:GOOG, NASDAQ:GOOGL), and Berkshire Hathaway (NYSE:BRK-A, NYSE:BRK-B) have conducted numerous stock splits over the years to ensure accessibility. Earlier this year Alphabet announced its own 20-for-1 stock split set for July.”
Anyone curious why a company like Amazon is planning to split its stock should consider the stocks that Dua noted. All three companies have enjoyed considerable success after splitting their stocks to make shares more accessible to small-scale investors. Another noteworthy example is Tesla (NASDAQ:TSLA), which saw shares more than double since its 5-for-1 stock split in August 2020. Now the company is planning another stock split, with its shareholder voting date set for August 2022.
What Comes Next for AMZN Stock
All systems are go for the Amazon stock split, which will likely be this week’s biggest market event. Current investors will receive 20 shares of AMZN stock for every one that they own.
While this type of stock split has no impact on Amazon’s fundamentals, it will lead to a trading frenzy, thereby pushing shares up quickly. For aspiring investors, the upcoming split date marks the perfect opportunity to buy. June 3 is an important day which everyone should be watching closely.
On the date of publication, Samuel O’Brient did not hold (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.