- Amazon (NASDAQ:AMZN) stock closed down 3% on a brutal day for tech stocks
- Should the vote go through, AMZN stock will be split 20-for-1 on June 3
- Today, investors may have also reacted to a new report on rapidly rising Amazon delivery injury rates
AMZN stock closed in the red by more than 3% today ahead of its stock split vote. Tomorrow, investors will have the chance to vote on whether Amazon goes forward with its proposed 20-for-1 split.
Amazon is the latest loss in an overall brutal day for the markets. Today, the S&P 500 saw a nearly 1% loss. Meanwhile, the tech-heavy Nasdaq Composite trended down 2.3%. Now, investors may be displaying some sheepishness ahead of the vote.
The Amazon split itself will have little bearing on the company’s value or market capitalization. The split will functionally divide each share of AMZN stock into 20 equally valued shares. This will however give interested investors a cheaper price point to get in on the company; currently, shares are worth roughly $2,000 apiece.
Should the vote pass, the split will occur on June 3 of this year.
AMZN Stock Slides on ‘Escalating Injury Crisis’
The upcoming split isn’t the only news AMZN stock investors may have reacted to today. Shares may have also suffered from a recent study detailing higher injury rates for the company’s delivery drivers.
Per a new report from the Strategic Organizing Center, a coalition of labor unions, one in five Amazon delivery drivers suffered injuries in 2021. This is a 40% increase year-over-year (YOY) and is likely the effect of production pressure placed on delivery drivers.
Many drivers aren’t included in Amazon’s reported injury records, however. That’s because many Amazon drivers are technically contractors, referred to as Delivery Service Partners (DSPs). According to the report, DSPs “likely account for half of all Amazon delivery system workers” in the United States. Amazon delivery drivers also suffer injury “more than twice the industry average.”
Amazon is on pace to become the largest parcel carrier in the United States. However, the company continues to face backlash from its less-than-ideal work conditions. Former CEO Jeff Bezos has previously made bold promises to make the multi-billion dollar e-commerce company “Earth’s Best Employer and Earth’s Safest Place to Work.” Whether Amazon can achieve these lofty goals in the face of this latest scathing report remains to be seen.
On the date of publication, Shrey Dua 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.