Amazon Stock Buyback and Split Detailed

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Credit: pexels.com, A person holding a cardboard Amazon Prime package on a snowy urban sidewalk.

Amazon has a history of buying back its own stock, with the company announcing its first stock buyback program in 2012. This move was a significant one, as it allowed Amazon to return capital to its shareholders.

In 2014, Amazon's board of directors authorized a $10 billion stock buyback program. This program was designed to help boost the company's stock price and reward shareholders.

Amazon's stock split in 2022 was a 20-for-1 split, which means that for every one share of Amazon stock a shareholder owned, they received 20 new shares. This split was done to make the stock more accessible to individual investors.

By reducing the stock price, the split made it easier for more people to buy and own Amazon stock.

On a similar theme: Share Buyback History

Amazon's Stock Buyback Plans

Amazon's stock buyback plans are a significant development for the company and its investors. Amazon plans to buy back $10 billion of its shares, marking the largest buyback in its 25-year listed history.

A unique perspective: How Does Apple Stock Buyback Work

Credit: youtube.com, Amazon to Split Stock 20-1, Plans $10 Billion Buyback

This buyback plan replaces a previous $5 billion plan established in 2016, which had purchased less than half of its targeted amount. The new plan is a significant increase, with Amazon spending $1.3 billion to repurchase 500,000 shares from January 1 to February 2, 2022.

The buyback is part of Amazon's efforts to return value to its shareholders, particularly its employees. An Amazon spokesperson noted that the split would give employees more flexibility in managing their equity and make the share price more accessible for investors.

Here are some key facts about Amazon's stock buyback plans:

The buyback plan is in addition to Amazon's 20-for-1 stock split, which will give investors 19 additional shares for every share they hold. Trading based on the new share price will begin on June 6.

Discover more: Share Amazon Cart

Why Buy Amazon Stock

Amazon's stock buyback is a move that can help shareholders, and it's worth considering if you're thinking of buying into the company. Amazon's stock split is a great way to make the stock more affordable for retail investors, but it doesn't actually change the company's valuation.

Credit: youtube.com, How To Buy Amazon Stock In 2025 (AMZN)

Amazon's stock has nearly doubled over the last two years, with a current market cap of over $2.12 trillion. The $10 billion stock buyback plan is a significant move that can increase the value of the remaining shares. Legendary investor Warren Buffett agrees, saying that repurchasing shares is the easiest and most certain way to increase shareholder wealth.

Amazon's stock split is similar to the one announced by Alphabet last month, and several other mega-cap companies have split their stocks since 2020. The 20-for-1 stock split will give investors 19 additional shares for every share they hold.

The stock buyback plan replaces the previous $5 billion stock repurchase authorized by Amazon's board in 2016. This move can help increase the value of the remaining shares, making it a great time to consider buying Amazon stock.

A different take: Tesla Stock Split

Timing and Details

Amazon's board didn't establish a timeline for using the $10 billion recently authorized for share repurchase, instead stating they'll buy shares opportunistically.

Credit: youtube.com, Amazon's 20-for-1 Stock Split & $10bn Share Buy Back Explained

The company previously bought back $2.12 billion of its stock under a $5 billion authorization that lasted for roughly six years, which isn't a lot of buying.

Amazon might buy back some shares after its stock split in June, which could "prime the pump" to encourage other investors to buy the stock.

The company is scheduled to announce its first-quarter results in April, and it could post a hefty net loss due to the negative impact of its investment in electric-vehicle maker Rivian.

Amazon's Financial Situation

Amazon's Financial Situation is a topic of interest, especially with the recent $10 billion buyback plan. This marks the largest share repurchase plan in Amazon's 25-year listed history.

The buyback plan replaces a previous $5 billion plan established in 2016, which the company hasn't fully utilized. Amazon spent $1.3 billion to repurchase 500,000 shares between January 1 and February 2, 2022.

Amazon's stock performance has been volatile, with a 10.3% decline in January, its worst monthly performance since December 2018. However, the stock has shown resilience, climbing 6.62% in after-hours trade following the stock split and buyback announcement.

Credit: youtube.com, Stock Buyback | Amazon and Walmart | Finance | SolutionInn

The company has chosen not to pay investors dividends, instead focusing on share repurchases. This strategy may be aimed at boosting investor confidence and increasing the stock's value.

Here's a quick summary of Amazon's recent financial moves:

Stock Split and Buyback

Amazon's stock split is a significant move, giving investors 19 additional shares for every share they hold. This is the first stock split by Amazon since 1999.

The stock split is similar to the one announced by Google parent Alphabet last month. Several mega cap companies such as Apple, Tesla, and Nvidia have split their stocks since 2020.

Trading based on the new share price will begin on June 6. Amazon's share split is a way to make the share price more accessible for people looking to invest in the company.

Amazon's stock has nearly doubled over the last two years, when demand for both its e-commerce and cloud computing business surged in the wake of the COVID-19 pandemic. The stock, which closed at $2,785.58 on Wednesday, has seen significant growth.

See what others are reading: Amazon Stock Split

Credit: youtube.com, Amazon Stock Split And Buyback - Here's How It Affects The Stock!

The stock buyback replaces the previous $5 billion stock repurchase authorized by Amazon's board in 2016. The company had repurchased $2.12 billion of its shares under this plan.

Here are some key facts about Amazon's stock split and buyback:

  • This is the first stock split by Amazon since 1999.
  • Amazon's share split is similar to the one announced by Google parent Alphabet last month.
  • Several mega cap companies such as Apple, Tesla, and Nvidia have split their stocks since 2020.
  • The stock buyback replaces the previous $5 billion stock repurchase authorized by Amazon's board in 2016.

Tasha Schumm

Junior Writer

Tasha Schumm is a skilled writer with a passion for simplifying complex topics. With a focus on corporate taxation, business taxes, and related subjects, Tasha has established herself as a knowledgeable and engaging voice in the industry. Her articles cover a range of topics, from in-depth explanations of corporate taxation in the United States to informative lists and definitions of key business terms.

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