If you are an average investor, a cheaper stock price for Amazon (AMZN) could be just the moment you need to get into a growth company with major potential catalysts, analysts say.
This week Amazon revealed a 20-for-1 stock split announcement. The company also uncorked 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.
“The stock split is important. It increases the accessibility to a broader array of investors and it does allow for inclusion in the Dow Jones Industrial Average (^DJI). Academically, does it change the stock price? No, but it makes it more accessible and if you are included in the Dow index-based funds will have to own you. That creates demand for shares,” said Wells Fargo tech analyst Brian Fitzgerald…
