- Amazon (NASDAQ:AMZN) investors will have the chance to vote on a stock split on May 25
- Its board of directors approved a 20-for-1 stock split earlier this month
- AMZN stock has been falling since the company’s unfortunate earnings report last month
Amazon (NASDAQ:AMZN) stock is trading in the red today despite its anticipated stock split coming later this month. Shares closed down more than 7% as investors consider jumping back into the discounted stock ahead of its split.
On May 25, Amazon shareholders will have the chance to vote on the proposed 20-for-1 stock split. The split doesn’t have any direct affect on the stock’s value, or Amazon’s market capitalization, but rather divides each share of the company into 20 pieces. As such, using today’s price of $2,142.25 per share, each investor would hold 20 shares priced at $107.11.
The split may come as a benefit to the company by offering investors a cheaper price point to invest in the business. Rather than needing to shell out the full $2,000 for one share, traders can buy in at a smaller price point.
Should Amazon investors feel the move is prudent, the stock split will occur on June 3 of this year.
Stock splits have been increasingly popular among large-cap tech companies. Alphabet (NASDAQ:GOOG, NASDAQ:GOOGL) also recently announced a split this past February.
Given the company’s decline in share price recently, the chance to make Amazon stock a bit more appealing to traders seems like a strong opportunity for the company.
AMZN Stock Falls Near 2-Year Low as Market Declines
Amazon stock has seen better days in the market. Shares have plummeted in value since the company disclosed an apparent e-commerce slowdown in its recent earnings call on April 28.
Indeed in its fiscal first quarter, the company saw its operating cash flow drop more than 40%, alongside decreased operating income. Amazon also reported a net loss of $3.8 billion in the March quarter, its first quarterly loss since 2015. Like most companies falling at the moment, Amazon cited inflation, the pandemic, and war in Ukraine as the primary culprits behind the online retailer’s slowed growth.
Amazon investors will surely be waiting for May 25 to voice their thoughts on the proposed stock split.
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.