On the first trading day after the stock split, Amazon (AMZO34) achieved a gain session in the stock market and reached the highest price in more than a month. Monday’s shares were split in a ratio of 1 to 20.
The split, approved by the company’s shareholders last month, doesn’t change the company’s market value, but it dilutes the stock price and makes paper more accessible to smaller pockets. The last time Amazon did a similar split was in 1999. Investors often interpret stock splits as signs of management confidence, he recalls The Wall Street Journal In today’s edition.
The split was announced on March 9. “This division will give our employees more flexibility in how they manage their stock in the company and will make the price more affordable for people who want to invest in the company,” Amazon said in a statement at the time.
In a report from the same period, Morgan Stanley said the split is seen as “part of a series of shareholder-friendly moves that could stimulate expansion potential.”
AMZN shares closed 1.99% higher at $124.79 on the Nasdaq. Despite the market’s first positive reaction to the split, the company’s shares have accumulated more than 25% in the year. Company BDRs (AMZO34) by 2.70% to 3.80 Brazilian Real.
Amazon has also been affected by the turbulent times for tech companies – in a higher interest rate scenario, these companies see their future profitability threatened and this has been reflected in the companies’ actions. Technologies.
However, most analysts consulted before Reuters Sees the upside potential of the paper. On average, the recommendation is the comparison for the paper and the target price is $178.49, which is an appreciation probability of over 40%.
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