On March 09, Amazon.com Inc. (AMZN) filed a Current Report on Form 8-K regarding a 20-for-1 stock split and Share Buy-back plan with the SEC. Consequently, the stock surged by $184.42 or 6.62% in the after-hours session.
The stock remained bullish in the regular trading session as 4.13 million shares exchanged hands. Intraday trading the sock fluctuated between a high of $2,805.00 and a low of $2,736.56. AMZN closed the session with a gain of 2.40% at a price of $2,785.58 per share, Following the reports of the filing, the stock went further up in the after-hours to reach a value of $2,970.00 per share.
The multinational tech giant, Amazon.com Inc. has a market capitalization of $1.38 trillion. Currently, the company has 508.84 million shares outstanding in the market. In the past five days, the stock has declined by 8.40% while losing 16.46% year to date.
AMZN’s Stock Split
According to the SEC filing, the company’s board approved a 20-for-1 stock split on March 9, 2022. The stock split will be effected through an Amendment to AMZN’s Restated Certificate of Incorporation, which will also result in a proportionate increase in the number of its shares. Moreover, the amendment will be put up for approval in the company’s Annual Meeting of Stockholders on May 25, 2022. Subject to approval, the record stockholders on May 27, will then receive 19 additional shares for each share on or about June 6 in their accounts. Thus, the split-adjusted basis trading is expected to commence on June 6, 2022.
Share Buy-Back Plan
In the same filing, the company also shares the authorization of a share buyback plan of up to $10 billion by its board for enhancing shareholder value in the long term. With no expiration date, the share buyback plan includes share repurchases through one or more transactions of various kinds. Furthermore, the new share buy-back plan replaced the previously announced 2016’s $5 billion repurchase plan. AMZN has thus far repurchased 2.12 billion of its shares under the 2016 program.
AMZN’s Recent Developments
On Tuesday and Wednesday, reports emerged about the company’s steps in light of the ongoing Russia-Ukraine conflict. As per the reports, AMZN has stopped shipping its retail website products to Russian customers. The company has also cut off access to its video streaming service in Russia. Additionally, Amazon.com Inc.’s cloud-computing unit is also said to be stopping the acceptance of new customers in Russia or Belarus.
