Tigger777
2021-06-04
Yes... So expensive to buy...
It’s Time For An Amazon Stock Split<blockquote>亚马逊是时候进行股票分割了</blockquote>
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So expensive to buy...","highlighted":1,"essential":1,"paper":1,"likeSize":1,"commentSize":1,"repostSize":0,"favoriteSize":0,"link":"https://laohu8.com/post/116876058","repostId":1146926516,"repostType":4,"repost":{"id":"1146926516","kind":"news","pubTimestamp":1622791862,"share":"https://www.laohu8.com/m/news/1146926516?lang=zh_CN&edition=full","pubTime":"2021-06-04 15:31","market":"us","language":"en","title":"It’s Time For An Amazon Stock Split<blockquote>亚马逊是时候进行股票分割了</blockquote>","url":"https://stock-news.laohu8.com/highlight/detail?id=1146926516","media":"TheStreet","summary":"Valued at over $3,000 apiece, Amazon could benefit from a stock split, following in the footsteps of","content":"<p>Valued at over $3,000 apiece, Amazon could benefit from a stock split, following in the footsteps of Apple, Tesla and NVIDIA. The Amazon Maven explains why.</p><p><blockquote>亚马逊的每股估值超过3,000美元,可以追随苹果、特斯拉和英伟达的脚步,从股票分割中受益。亚马逊专家解释了原因。</blockquote></p><p> NVIDIA Corporation (NVDA) has been the most recent large tech player to announce a stock split: one share of the semiconductor company’s equity becomes four on July 19. Since the news broke, NVDA shares have rallied 14% in less than two weeks.</p><p><blockquote>英伟达公司(NVDA)是最新一家宣布股票分割的大型科技公司:7月19日,这家半导体公司的一股股权变为四股。自消息传出以来,NVDA股价在不到两周的时间内上涨了14%。</blockquote></p><p> On the back of another stock split in the tech world, investors might be wondering: valued at well over $3,000 apiece, when will Amazon stock (AMZN) finally undergo its own? And if a split happens, could the event serve as a catalyst that sends shares of the e-commerce giant above previous highs?</p><p><blockquote>在科技界又一次股票分割的背景下,投资者可能想知道:每股价值远超3,000美元的亚马逊股票(AMZN)何时才能最终进行自己的股票分割?如果发生分拆,该事件能否成为催化剂,使这家电子商务巨头的股价突破之前的高点?</blockquote></p><p> <p class=\"t-img-caption\"><img src=\"https://static.tigerbbs.com/50ebac77ebfd6ea3ff5c2bd439c8c859\" tg-width=\"1240\" tg-height=\"858\"><span>Figure 1: Amazon's headquarters in Seattle, WA.</span></p><p><blockquote><p class=\"t-img-caption\"><span>图1:亚马逊位于华盛顿州西雅图的总部。</span></p></blockquote></p><p> <b>Understanding a stock split</b></p><p><blockquote><b>了解股票分割</b></blockquote></p><p> First, it helps to understand what a split is. Officially a “stock dividend”, splits serve to divide a company’s equity into more numerous (but smaller) “chunks of ownership”. In August 2020,I used the pizza analogy to explain how stock splits work, see box below.</p><p><blockquote>首先,它有助于理解什么是分裂。正式名称为“股票股息”,拆分用于将公司股权划分为更多(但更小)的“所有权块”。2020年8月,我用披萨类比来解释股票分割的运作方式,见下框。</blockquote></p><p> When Apple (AAPL) announced its 2020 stock split, CEO Tim Cook explained that the idea was to “make the stock more accessible to a broader base of investors”. But since brokerage firms now offer fractional share trading, a split serves primarily as an investor sentiment boost.</p><p><blockquote>当苹果(AAPL)宣布2020年股票分割时,首席执行官Tim Cook解释说,这个想法是为了“让更广泛的投资者更容易购买该股票”。但由于经纪公司现在提供碎股交易,分拆主要是为了提振投资者情绪。</blockquote></p><p> <p class=\"t-img-caption\"><img src=\"https://static.tigerbbs.com/7338ee255d7a5c81fca00cbb67148292\" tg-width=\"534\" tg-height=\"248\"><span>Figure 2: How do you like your pizza?</span></p><p><blockquote><p class=\"t-img-caption\"><span>图2:你觉得你的披萨怎么样?</span></p></blockquote></p><p> <b>Amazon’s split history</b></p><p><blockquote><b>亚马逊的拆分历史</b></blockquote></p><p> Amazon is no stranger to stock splits, but the last one has not happened in a while. Below is the short list of previous AMZN splits; the split ratios; and how share price behaved immediately following each event:</p><p><blockquote>亚马逊对股票分割并不陌生,但上一次股票分割已经有一段时间没有发生了。以下是AMZN之前分拆的简短列表;分割比率;以及每次事件发生后股价的表现:</blockquote></p><p> <ul> <li><b>June 1998, 2-for-1</b>: only about one year after Amazon became a public company, its stock was split for the first time. From the original IPO price of $18, AMZN had climbed to $87 as of the event date. Within only one month of the split, Amazon stock had gained<i>a whopping 84%</i>.</li> <li><b>January 1999, 3-for-1</b>: barely half a year went by since the first split, and Amazon shares were parted in three. One month after this second event, Amazon stock had<i>declined 7%</i>. However, much of the upside in share price may have already been captured since the IPO: a 30-fold increase in less than two years, fueled in great part by the historic dot-com rally.</li> <li><b>September 1999, 2-for-1</b>: during the late stages of the internet bubble, Amazon executed its last stock split. One month after it, Amazon stock had climbed<i>another 31%</i>. The bursting of the bubble, starting in March 2000, put an end to Amazon’s share split run.</li> </ul> <b>The Amazon Maven’s views</b></p><p><blockquote><ul><li><b>1998年6月,买二送一</b>:亚马逊成为上市公司仅一年左右,其股票就首次被拆分。截至活动日期,AMZN的IPO价格已从最初的18美元攀升至87美元。分拆后仅一个月内,亚马逊股价就上涨了<i>高达84%</i>.</li><li><b>1999年1月,买三送一</b>:距离第一次分拆还不到半年,亚马逊的股票就被分成了三份。第二次事件发生一个月后,亚马逊股票<i>下降7%</i>然而,自IPO以来,股价的大部分上涨空间可能已经被抓住:在不到两年的时间里,股价上涨了30倍,这在很大程度上是由历史性的互联网上涨推动的。</li><li><b>1999年9月,买二送一</b>:在互联网泡沫的后期,亚马逊执行了最后一次股票分割。一个月后,亚马逊股价上涨<i>另有31%</i>2000年3月开始的泡沫破裂结束了亚马逊的股票分割。</li></ul><b>亚马逊专家的观点</b></blockquote></p><p> Amazon’s stock split history says one thing clearly: Jeff Bezos and company have not been a fan of the strategy, at least not since the post-IPO days that also coincided with market exuberance for tech stocks. But the company could change how it views stock splits, considering the upcoming CEO transition.</p><p><blockquote>亚马逊的股票分割历史清楚地表明了一件事:杰夫·贝索斯和他的公司并不喜欢这一策略,至少自亚马逊IPO后的日子以来就不喜欢了,当时正值科技股市场繁荣。但考虑到即将到来的首席执行官换届,该公司可能会改变对股票分割的看法。</blockquote></p><p> I believe that Amazon could benefit from a lower nominal share price for at least two reasons. First, although splits should logically not create equity value (remember the pizza example), it has been effective at boosting shareholder morale and investor sentiment. Consider the following:</p><p><blockquote>我认为亚马逊可以从较低的名义股价中受益,至少有两个原因。首先,尽管从逻辑上讲,分拆不应该创造股权价值(还记得披萨的例子),但它确实有效地提振了股东士气和投资者情绪。考虑以下几点:</blockquote></p><p> <ul> <li>Apple announced a 4-to-1 split on July 30 of last year, to be executed at the end of August. During this one-month period, AAPL shares climbed 34% to $129 – interestingly, reaching a price that is above current levels.</li> <li>Tesla (TSLA) executed its first 5-to-1 split in history around the same time: late August 2020. In the three weeks between the announcement and the split execution, TSLA shares surged by a jaw-dropping 80% to about $500.</li> <li>NVIDIA seems to be heading in the same direction: a stock split followed by increased bullishness for the shares.</li> </ul> Second, at a lower share price, Amazon stock could qualify for the Dow Jones Industrial Average. Since the index uses a price-weighted approach to allocating the holdings, AMZN at $3,000-plus would not stand a chance at being considered for inclusion. At $300 or $150, the story could be different.</p><p><blockquote><ul><li>苹果于去年7月30日宣布以4比1的比例进行拆分,并将于8月底执行。在这一个月的时间里,AAPL股价上涨了34%,达到了129美元——有趣的是,达到了高于当前水平的价格。</li><li>特斯拉(TSLA)大约在同一时间执行了历史上首次5比1分拆:2020年8月下旬。在宣布这一消息和分拆执行之间的三周内,特斯拉股价飙升了令人瞠目结舌的80%,至约500美元。</li><li>英伟达似乎正朝着同一个方向前进:股票分割,随后对该股的看涨情绪增加。</li></ul>其次,如果股价较低,亚马逊股票可能有资格进入道琼斯工业平均指数。由于该指数采用价格加权方法来分配持股,因此股价超过3,000美元的AMZN没有机会被考虑纳入。如果是300美元或150美元,情况可能会有所不同。</blockquote></p><p> Being in the Dow could boost Amazon stock in a couple of ways: (1) more visibility from individual investors that track the index, and (2) a spike in demand from institutional investors (think Vanguard, BlackRock) who would need to buy AMZN shares in order to mirror the Dow’s holdings.</p><p><blockquote>进入道琼斯指数可以通过多种方式提振亚马逊股票:(1)跟踪该指数的个人投资者提高知名度,以及(2)需要购买亚马逊股票的机构投资者(例如先锋集团、贝莱德)的需求激增。股票以反映道琼斯指数的持股情况。</blockquote></p><p></p>","collect":0,"html":"<!DOCTYPE html>\n<html>\n<head>\n<meta http-equiv=\"Content-Type\" content=\"text/html; charset=utf-8\" />\n<meta name=\"viewport\" content=\"width=device-width,initial-scale=1.0,minimum-scale=1.0,maximum-scale=1.0,user-scalable=no\"/>\n<meta name=\"format-detection\" content=\"telephone=no,email=no,address=no\" />\n<title>It’s Time For An Amazon Stock Split<blockquote>亚马逊是时候进行股票分割了</blockquote></title>\n<style type=\"text/css\">\na,abbr,acronym,address,applet,article,aside,audio,b,big,blockquote,body,canvas,caption,center,cite,code,dd,del,details,dfn,div,dl,dt,\nem,embed,fieldset,figcaption,figure,footer,form,h1,h2,h3,h4,h5,h6,header,hgroup,html,i,iframe,img,ins,kbd,label,legend,li,mark,menu,nav,\nobject,ol,output,p,pre,q,ruby,s,samp,section,small,span,strike,strong,sub,summary,sup,table,tbody,td,tfoot,th,thead,time,tr,tt,u,ul,var,video{ font:inherit;margin:0;padding:0;vertical-align:baseline;border:0 }\nbody{ font-size:16px; line-height:1.5; color:#999; background:transparent; }\n.wrapper{ overflow:hidden;word-break:break-all;padding:10px; }\nh1,h2{ font-weight:normal; line-height:1.35; margin-bottom:.6em; }\nh3,h4,h5,h6{ line-height:1.35; margin-bottom:1em; }\nh1{ font-size:24px; }\nh2{ font-size:20px; }\nh3{ font-size:18px; }\nh4{ font-size:16px; }\nh5{ font-size:14px; }\nh6{ font-size:12px; }\np,ul,ol,blockquote,dl,table{ margin:1.2em 0; }\nul,ol{ margin-left:2em; }\nul{ list-style:disc; }\nol{ list-style:decimal; }\nli,li p{ margin:10px 0;}\nimg{ max-width:100%;display:block;margin:0 auto 1em; }\nblockquote{ color:#B5B2B1; border-left:3px solid #aaa; padding:1em; }\nstrong,b{font-weight:bold;}\nem,i{font-style:italic;}\ntable{ width:100%;border-collapse:collapse;border-spacing:1px;margin:1em 0;font-size:.9em; }\nth,td{ padding:5px;text-align:left;border:1px solid #aaa; }\nth{ font-weight:bold;background:#5d5d5d; }\n.symbol-link{font-weight:bold;}\n/* header{ border-bottom:1px solid #494756; } */\n.title{ margin:0 0 8px;line-height:1.3;color:#ddd; }\n.meta {color:#5e5c6d;font-size:13px;margin:0 0 .5em; }\na{text-decoration:none; color:#2a4b87;}\n.meta .head { display: inline-block; overflow: hidden}\n.head .h-thumb { width: 30px; height: 30px; margin: 0; padding: 0; border-radius: 50%; float: left;}\n.head .h-content { margin: 0; padding: 0 0 0 9px; float: left;}\n.head .h-name {font-size: 13px; color: #eee; margin: 0;}\n.head .h-time {font-size: 12.5px; color: #7E829C; margin: 0;}\n.small {font-size: 12.5px; display: inline-block; transform: scale(0.9); -webkit-transform: scale(0.9); transform-origin: left; -webkit-transform-origin: left;}\n.smaller {font-size: 12.5px; display: inline-block; transform: scale(0.8); -webkit-transform: scale(0.8); transform-origin: left; -webkit-transform-origin: left;}\n.bt-text {font-size: 12px;margin: 1.5em 0 0 0}\n.bt-text p {margin: 0}\n</style>\n</head>\n<body>\n<div class=\"wrapper\">\n<header>\n<h2 class=\"title\">\nIt’s Time For An Amazon Stock Split<blockquote>亚马逊是时候进行股票分割了</blockquote>\n</h2>\n<h4 class=\"meta\">\n<p class=\"head\">\n<strong class=\"h-name small\">TheStreet</strong><span class=\"h-time small\">2021-06-04 15:31</span>\n</p>\n</h4>\n</header>\n<article>\n<p>Valued at over $3,000 apiece, Amazon could benefit from a stock split, following in the footsteps of Apple, Tesla and NVIDIA. The Amazon Maven explains why.</p><p><blockquote>亚马逊的每股估值超过3,000美元,可以追随苹果、特斯拉和英伟达的脚步,从股票分割中受益。亚马逊专家解释了原因。</blockquote></p><p> NVIDIA Corporation (NVDA) has been the most recent large tech player to announce a stock split: one share of the semiconductor company’s equity becomes four on July 19. Since the news broke, NVDA shares have rallied 14% in less than two weeks.</p><p><blockquote>英伟达公司(NVDA)是最新一家宣布股票分割的大型科技公司:7月19日,这家半导体公司的一股股权变为四股。自消息传出以来,NVDA股价在不到两周的时间内上涨了14%。</blockquote></p><p> On the back of another stock split in the tech world, investors might be wondering: valued at well over $3,000 apiece, when will Amazon stock (AMZN) finally undergo its own? And if a split happens, could the event serve as a catalyst that sends shares of the e-commerce giant above previous highs?</p><p><blockquote>在科技界又一次股票分割的背景下,投资者可能想知道:每股价值远超3,000美元的亚马逊股票(AMZN)何时才能最终进行自己的股票分割?如果发生分拆,该事件能否成为催化剂,使这家电子商务巨头的股价突破之前的高点?</blockquote></p><p> <p class=\"t-img-caption\"><img src=\"https://static.tigerbbs.com/50ebac77ebfd6ea3ff5c2bd439c8c859\" tg-width=\"1240\" tg-height=\"858\"><span>Figure 1: Amazon's headquarters in Seattle, WA.</span></p><p><blockquote><p class=\"t-img-caption\"><span>图1:亚马逊位于华盛顿州西雅图的总部。</span></p></blockquote></p><p> <b>Understanding a stock split</b></p><p><blockquote><b>了解股票分割</b></blockquote></p><p> First, it helps to understand what a split is. Officially a “stock dividend”, splits serve to divide a company’s equity into more numerous (but smaller) “chunks of ownership”. In August 2020,I used the pizza analogy to explain how stock splits work, see box below.</p><p><blockquote>首先,它有助于理解什么是分裂。正式名称为“股票股息”,拆分用于将公司股权划分为更多(但更小)的“所有权块”。2020年8月,我用披萨类比来解释股票分割的运作方式,见下框。</blockquote></p><p> When Apple (AAPL) announced its 2020 stock split, CEO Tim Cook explained that the idea was to “make the stock more accessible to a broader base of investors”. But since brokerage firms now offer fractional share trading, a split serves primarily as an investor sentiment boost.</p><p><blockquote>当苹果(AAPL)宣布2020年股票分割时,首席执行官Tim Cook解释说,这个想法是为了“让更广泛的投资者更容易购买该股票”。但由于经纪公司现在提供碎股交易,分拆主要是为了提振投资者情绪。</blockquote></p><p> <p class=\"t-img-caption\"><img src=\"https://static.tigerbbs.com/7338ee255d7a5c81fca00cbb67148292\" tg-width=\"534\" tg-height=\"248\"><span>Figure 2: How do you like your pizza?</span></p><p><blockquote><p class=\"t-img-caption\"><span>图2:你觉得你的披萨怎么样?</span></p></blockquote></p><p> <b>Amazon’s split history</b></p><p><blockquote><b>亚马逊的拆分历史</b></blockquote></p><p> Amazon is no stranger to stock splits, but the last one has not happened in a while. Below is the short list of previous AMZN splits; the split ratios; and how share price behaved immediately following each event:</p><p><blockquote>亚马逊对股票分割并不陌生,但上一次股票分割已经有一段时间没有发生了。以下是AMZN之前分拆的简短列表;分割比率;以及每次事件发生后股价的表现:</blockquote></p><p> <ul> <li><b>June 1998, 2-for-1</b>: only about one year after Amazon became a public company, its stock was split for the first time. From the original IPO price of $18, AMZN had climbed to $87 as of the event date. Within only one month of the split, Amazon stock had gained<i>a whopping 84%</i>.</li> <li><b>January 1999, 3-for-1</b>: barely half a year went by since the first split, and Amazon shares were parted in three. One month after this second event, Amazon stock had<i>declined 7%</i>. However, much of the upside in share price may have already been captured since the IPO: a 30-fold increase in less than two years, fueled in great part by the historic dot-com rally.</li> <li><b>September 1999, 2-for-1</b>: during the late stages of the internet bubble, Amazon executed its last stock split. One month after it, Amazon stock had climbed<i>another 31%</i>. The bursting of the bubble, starting in March 2000, put an end to Amazon’s share split run.</li> </ul> <b>The Amazon Maven’s views</b></p><p><blockquote><ul><li><b>1998年6月,买二送一</b>:亚马逊成为上市公司仅一年左右,其股票就首次被拆分。截至活动日期,AMZN的IPO价格已从最初的18美元攀升至87美元。分拆后仅一个月内,亚马逊股价就上涨了<i>高达84%</i>.</li><li><b>1999年1月,买三送一</b>:距离第一次分拆还不到半年,亚马逊的股票就被分成了三份。第二次事件发生一个月后,亚马逊股票<i>下降7%</i>然而,自IPO以来,股价的大部分上涨空间可能已经被抓住:在不到两年的时间里,股价上涨了30倍,这在很大程度上是由历史性的互联网上涨推动的。</li><li><b>1999年9月,买二送一</b>:在互联网泡沫的后期,亚马逊执行了最后一次股票分割。一个月后,亚马逊股价上涨<i>另有31%</i>2000年3月开始的泡沫破裂结束了亚马逊的股票分割。</li></ul><b>亚马逊专家的观点</b></blockquote></p><p> Amazon’s stock split history says one thing clearly: Jeff Bezos and company have not been a fan of the strategy, at least not since the post-IPO days that also coincided with market exuberance for tech stocks. But the company could change how it views stock splits, considering the upcoming CEO transition.</p><p><blockquote>亚马逊的股票分割历史清楚地表明了一件事:杰夫·贝索斯和他的公司并不喜欢这一策略,至少自亚马逊IPO后的日子以来就不喜欢了,当时正值科技股市场繁荣。但考虑到即将到来的首席执行官换届,该公司可能会改变对股票分割的看法。</blockquote></p><p> I believe that Amazon could benefit from a lower nominal share price for at least two reasons. First, although splits should logically not create equity value (remember the pizza example), it has been effective at boosting shareholder morale and investor sentiment. Consider the following:</p><p><blockquote>我认为亚马逊可以从较低的名义股价中受益,至少有两个原因。首先,尽管从逻辑上讲,分拆不应该创造股权价值(还记得披萨的例子),但它确实有效地提振了股东士气和投资者情绪。考虑以下几点:</blockquote></p><p> <ul> <li>Apple announced a 4-to-1 split on July 30 of last year, to be executed at the end of August. During this one-month period, AAPL shares climbed 34% to $129 – interestingly, reaching a price that is above current levels.</li> <li>Tesla (TSLA) executed its first 5-to-1 split in history around the same time: late August 2020. In the three weeks between the announcement and the split execution, TSLA shares surged by a jaw-dropping 80% to about $500.</li> <li>NVIDIA seems to be heading in the same direction: a stock split followed by increased bullishness for the shares.</li> </ul> Second, at a lower share price, Amazon stock could qualify for the Dow Jones Industrial Average. Since the index uses a price-weighted approach to allocating the holdings, AMZN at $3,000-plus would not stand a chance at being considered for inclusion. At $300 or $150, the story could be different.</p><p><blockquote><ul><li>苹果于去年7月30日宣布以4比1的比例进行拆分,并将于8月底执行。在这一个月的时间里,AAPL股价上涨了34%,达到了129美元——有趣的是,达到了高于当前水平的价格。</li><li>特斯拉(TSLA)大约在同一时间执行了历史上首次5比1分拆:2020年8月下旬。在宣布这一消息和分拆执行之间的三周内,特斯拉股价飙升了令人瞠目结舌的80%,至约500美元。</li><li>英伟达似乎正朝着同一个方向前进:股票分割,随后对该股的看涨情绪增加。</li></ul>其次,如果股价较低,亚马逊股票可能有资格进入道琼斯工业平均指数。由于该指数采用价格加权方法来分配持股,因此股价超过3,000美元的AMZN没有机会被考虑纳入。如果是300美元或150美元,情况可能会有所不同。</blockquote></p><p> Being in the Dow could boost Amazon stock in a couple of ways: (1) more visibility from individual investors that track the index, and (2) a spike in demand from institutional investors (think Vanguard, BlackRock) who would need to buy AMZN shares in order to mirror the Dow’s holdings.</p><p><blockquote>进入道琼斯指数可以通过多种方式提振亚马逊股票:(1)跟踪该指数的个人投资者提高知名度,以及(2)需要购买亚马逊股票的机构投资者(例如先锋集团、贝莱德)的需求激增。股票以反映道琼斯指数的持股情况。</blockquote></p><p></p>\n<div class=\"bt-text\">\n\n\n<p> 来源:<a href=\"https://www.thestreet.com/amazon/stock/its-time-for-an-amazon-stock-split\">TheStreet</a></p>\n<p>为提升您的阅读体验,我们对本页面进行了排版优化</p>\n\n\n</div>\n</article>\n</div>\n</body>\n</html>\n","type":0,"thumbnail":"","relate_stocks":{"AMZN":"亚马逊"},"source_url":"https://www.thestreet.com/amazon/stock/its-time-for-an-amazon-stock-split","is_english":true,"share_image_url":"https://static.laohu8.com/e9f99090a1c2ed51c021029395664489","article_id":"1146926516","content_text":"Valued at over $3,000 apiece, Amazon could benefit from a stock split, following in the footsteps of Apple, Tesla and NVIDIA. The Amazon Maven explains why.\nNVIDIA Corporation (NVDA) has been the most recent large tech player to announce a stock split: one share of the semiconductor company’s equity becomes four on July 19. Since the news broke, NVDA shares have rallied 14% in less than two weeks.\nOn the back of another stock split in the tech world, investors might be wondering: valued at well over $3,000 apiece, when will Amazon stock (AMZN) finally undergo its own? And if a split happens, could the event serve as a catalyst that sends shares of the e-commerce giant above previous highs?\nFigure 1: Amazon's headquarters in Seattle, WA.\nUnderstanding a stock split\nFirst, it helps to understand what a split is. Officially a “stock dividend”, splits serve to divide a company’s equity into more numerous (but smaller) “chunks of ownership”. In August 2020,I used the pizza analogy to explain how stock splits work, see box below.\nWhen Apple (AAPL) announced its 2020 stock split, CEO Tim Cook explained that the idea was to “make the stock more accessible to a broader base of investors”. But since brokerage firms now offer fractional share trading, a split serves primarily as an investor sentiment boost.\nFigure 2: How do you like your pizza?\nAmazon’s split history\nAmazon is no stranger to stock splits, but the last one has not happened in a while. Below is the short list of previous AMZN splits; the split ratios; and how share price behaved immediately following each event:\n\nJune 1998, 2-for-1: only about one year after Amazon became a public company, its stock was split for the first time. From the original IPO price of $18, AMZN had climbed to $87 as of the event date. Within only one month of the split, Amazon stock had gaineda whopping 84%.\nJanuary 1999, 3-for-1: barely half a year went by since the first split, and Amazon shares were parted in three. One month after this second event, Amazon stock haddeclined 7%. However, much of the upside in share price may have already been captured since the IPO: a 30-fold increase in less than two years, fueled in great part by the historic dot-com rally.\nSeptember 1999, 2-for-1: during the late stages of the internet bubble, Amazon executed its last stock split. One month after it, Amazon stock had climbedanother 31%. The bursting of the bubble, starting in March 2000, put an end to Amazon’s share split run.\n\nThe Amazon Maven’s views\nAmazon’s stock split history says one thing clearly: Jeff Bezos and company have not been a fan of the strategy, at least not since the post-IPO days that also coincided with market exuberance for tech stocks. But the company could change how it views stock splits, considering the upcoming CEO transition.\nI believe that Amazon could benefit from a lower nominal share price for at least two reasons. First, although splits should logically not create equity value (remember the pizza example), it has been effective at boosting shareholder morale and investor sentiment. Consider the following:\n\nApple announced a 4-to-1 split on July 30 of last year, to be executed at the end of August. During this one-month period, AAPL shares climbed 34% to $129 – interestingly, reaching a price that is above current levels.\nTesla (TSLA) executed its first 5-to-1 split in history around the same time: late August 2020. In the three weeks between the announcement and the split execution, TSLA shares surged by a jaw-dropping 80% to about $500.\nNVIDIA seems to be heading in the same direction: a stock split followed by increased bullishness for the shares.\n\nSecond, at a lower share price, Amazon stock could qualify for the Dow Jones Industrial Average. Since the index uses a price-weighted approach to allocating the holdings, AMZN at $3,000-plus would not stand a chance at being considered for inclusion. At $300 or $150, the story could be different.\nBeing in the Dow could boost Amazon stock in a couple of ways: (1) more visibility from individual investors that track the index, and (2) a spike in demand from institutional investors (think Vanguard, BlackRock) who would need to buy AMZN shares in order to mirror the Dow’s holdings.","news_type":1,"symbols_score_info":{"AMZN":0.9}},"isVote":1,"tweetType":1,"viewCount":202,"commentLimit":10,"likeStatus":false,"favoriteStatus":false,"reportStatus":false,"symbols":[],"verified":2,"subType":0,"readableState":1,"langContent":"EN","currentLanguage":"EN","warmUpFlag":false,"orderFlag":false,"shareable":true,"causeOfNotShareable":"","featuresForAnalytics":[],"commentAndTweetFlag":false,"andRepostAutoSelectedFlag":false,"upFlag":false,"length":25,"xxTargetLangEnum":"ORIG"},"commentList":[],"isCommentEnd":true,"isTiger":false,"isWeiXinMini":false,"url":"/m/post/116876058"}
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