Amazon’s (AMZN) big stock split could pave the way for entrance into the 30-member exclusive club known as the Dow Jones Industrial Average.
“We expect that the stock split should increase the accessibility of shares to a broader array of potential investors, and note that the split should allow for potential inclusion of Amazon shares in the Dow Jones Industrial Average,” said Wells Fargo analyst Brian Fitzgerald.
Shares of the e-commerce giant rose 5% in pre-market trading on Thursday on the heels of a 20-for-1 stock split announcement. The company also revealed a massive $10 billion stock buyback plan.
Amazon’s stock split is the fourth one in its history. The last split came in September 1999.
If shareholders approve of the split, it will begin trading on the new basis on June 6.
Even as Amazon’s stock will get cheaper on paper after the split, Dow inclusion is far from guaranteed….
