- Amazon (NASDAQ:AMZN) shareholders approved the 20-for-1 stock split today
- The stock split will occur on June 3
- AMZN stock closed up 2.6% on the news
Source: Ken Wolter / Shutterstock.com
Investors approved the Amazon (NASDAQ:AMZN) stock split today to Wall Street’s delight. Hopeful Amazon investors will be able to purchase shares of the company at a fraction of its current cost on its June 3 stock split date.
After weeks of anticipation, Amazon investors approved the 20-for-1 stock split at the company’s annual shareholder meeting. The stock split will effectively divide Amazon’s current shares into 20 smaller pieces of the company. Using today’s price of $2,135, after the stock split, Amazon would trade for about $107 per share. While it doesn’t directly enhance the company market capitalization, it makes Amazon shares far more affordable to investors.
Amazon is the latest major tech company going forward with a stock split. Companies like Apple (NASDAQ:AAPL), Alphabet (NASDAQ:GOOG, NASDAQ:GOOGL), and Berkshire Hathaway (NYSE:BRK-A, NYSE:BRK-B) have conducted numerous stock splits over the years to ensure accessibility. Earlier this year Alphabet announced its own 20-for-1 stock split set for July.
AMZN Stock Climbs Following Landmark Shareholder Meeting
The stock split wasn’t the only subject of debate at the Amazon shareholder meeting. A record 15 proposals were voted on in this year’s meeting. The proposals ranged from seeking rights to unionize, to requests that hourly workers be considered for open board of director spots. Nearly all of the suggestions were rejected by shareholders, however.
One proposal asked Amazon to offer reports on worker injury rates. Amazon has come under fire recently for its less-than-ideal work conditions, leading to more injuries than other comparable companies. A study was released just this week documenting that nearly one in five Amazon delivery drivers suffered injuries in 2021. The report says these injuries largely went under the radar due to Amazon’s employee classification policies.
Amazon stock enjoyed a surprisingly strong day in the market, given recent trading conditions. AMZN closed up 2.6%, joining the S&P 500 and Nasdaq Composite in the green.
AMZN investors are likely crossing their fingers its upcoming stock split will push the stock back into the limelight.
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.
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