Amazon, the world’s largest online retailer, has become one of the most valuable companies in the world with a market capitalization of over $1.5 trillion. A significant contributor to this success has been the company’s stock performance, which has surged over the years. One of the ways in which Amazon has enabled retail investors to participate in its growth is through its stock splits. In this article, we’ll take a look at Amazon’s stock split history and the impact these splits have had on the company and its investors.
When did amazon stock split
Amazon’s Early Days and First Stock Split
Amazon went public in May 1997, and its shares started trading on the NASDAQ stock exchange at a price of $18 per share. Over the next few years, Amazon’s stock price soared as the company grew rapidly. By the end of 1998, Amazon’s stock price had increased more than tenfold, reaching $230 per share. At this point, the company’s management decided to split the stock to make it more accessible to retail investors.
On June 2, 1998, Amazon announced a 2-for-1 stock split, which effectively halved the price of each share. This move made it easier for investors to buy shares of Amazon and contributed to the company’s continued growth.
Second and Third Stock Splits
Amazon’s success continued throughout the early 2000s, and the company’s stock price continued to rise. In 1999, Amazon announced its second stock split, another 2-for-1 split that effectively doubled the number of outstanding shares. This split was announced on January 4, 1999, and the new shares started trading on January 28, 1999.
Amazon’s third stock split was announced on January 17, 2000, just a year after the second split. This time, the company implemented a 3-for-1 stock split, which tripled the number of outstanding shares. The new shares began trading on February 14, 2000.
Impact of Amazon’s Stock Splits
Amazon’s stock splits have made it easier for retail investors to participate in the company’s growth. By lowering the price of each share, Amazon has made its stock more accessible to a wider range of investors. This has helped to increase demand for Amazon’s shares, which has, in turn, contributed to the company’s continued growth.
One of the most significant impacts of Amazon’s stock splits has been on the company’s share price. After each split, the company’s stock price has tended to rise as demand for the shares has increased. For example, after the first split in 1998, Amazon’s stock price surged from $87 per share to over $300 per share in just six months.
Similarly, after the second split in 1999, Amazon’s stock price rose from around $80 per share to over $100 per share in just a few months. And after the third split in 2000, the company’s stock price rose from around $65 per share to over $100 per share in just a few weeks.
In addition to increasing demand for Amazon’s shares and boosting the company’s stock price, the stock splits have also made it easier for Amazon to raise capital. By issuing more shares, Amazon has been able to raise additional funds without diluting the value of existing shares too much.
Final Thoughts
Amazon has been one of the most successful companies of the past few decades, and its stock has been a significant contributor to that success. The company’s stock splits have helped to make its shares more accessible to a wider range of investors and have contributed to the company’s continued growth.
While there are no guarantees in the stock market, Amazon’s strong financial performance, dominant market position, and track record of innovation make it an attractive investment.
Amazon Stock Split: A Timeline of the Company’s Splits Over the Years
Amazon, the world’s largest online retailer, has a long history of stock splits that have made its shares more accessible to retail investors. By splitting its stock, Amazon has been able to lower the price of each share and make it easier for investors to participate in its growth. In this article, we’ll take a look at Amazon’s stock split timeline and the impact these splits have had on the company and its investors.
Amazon’s First Stock Split
Amazon went public in May 1997, and its shares started trading on the NASDAQ stock exchange at a price of $18 per share. By the end of 1998, Amazon’s stock price had increased more than tenfold, reaching $230 per share. This prompted the company’s management to announce its first stock split on June 2, 1998.
The split was a 2-for-1 split, which effectively halved the price of each share. This move made it easier for investors to buy shares of Amazon and contributed to the company’s continued growth.
Second and Third Stock Splits
Amazon’s success continued throughout the early 2000s, and the company’s stock price continued to rise. In 1999, Amazon announced its second stock split, another 2-for-1 split that effectively doubled the number of outstanding shares. This split was announced on January 4, 1999, and the new shares started trading on January 28, 1999.
Amazon’s third stock split was announced on January 17, 2000, just a year after the second split. This time, the company implemented a 3-for-1 stock split, which tripled the number of outstanding shares. The new shares began trading on February 14, 2000.
Fourth Stock Split
Amazon’s fourth stock split came over a decade later, on September 2, 2020. The company announced a 5-for-1 stock split, which increased the number of outstanding shares to five times the previous amount. The split was designed to make the shares more affordable to retail investors and to increase liquidity in the stock.
The split had an immediate impact on Amazon’s stock price, with the price dropping by around 2% after the announcement. However, the price quickly rebounded and continued to climb higher in the months that followed.
Impact of Amazon’s Stock Splits
Amazon’s stock splits have had a significant impact on the company’s share price and investor demand. After each split, the company’s stock price has tended to rise as demand for the shares has increased.
For example, after the first split in 1998, Amazon’s stock price surged from $87 per share to over $300 per share in just six months. Similarly, after the second split in 1999, Amazon’s stock price rose from around $80 per share to over $100 per share in just a few months. And after the third split in 2000, the company’s stock price rose from around $65 per share to over $100 per share in just a few weeks.
In addition to increasing demand for Amazon’s shares and boosting the company’s stock price, the stock splits have also made it easier for Amazon to raise capital. By issuing more shares, Amazon has been able to raise additional funds without diluting the value of existing shares too much.
Final Thoughts
Amazon’s stock splits have played a significant role in the company’s growth and success over the years. By making its shares more accessible to retail investors, Amazon has been able to increase demand for its stock and raise additional capital. The company’s strong financial performance, dominant market position, and track record of innovation make it an attractive investment for many, and its stock splits have made it easier for investors to participate in its growth.