Updated at 12:53 pm EST
Amazon (AMZN) – Get Amazon.com, Inc. Report shares powered higher Monday in the first day of trading following a 20-for-1 split of the online retailing giant’s stock that will bring its nominal price closer in line with mega-cap tech peers such as Apple (AAPL) – Get Apple Inc. Report and Meta (FB) – Get Meta Platforms Inc. Class A Report.
Amazon said shareholders of record on May 24 received 19 extra shares of the group for each one held after the split, which was first made public in March. The split — the first for the company in three decades — was formalized after the close of trading Friday and will begin changing hands on the adjusted basis later today.
Google parent Alphabet (GOOGL) – Get Alphabet Inc. Class A Report is also preparing to reduce its nominal share price into the mid-$100 range — from a Friday close of $2,327.50 each — when its own 20-for-1 split is completed on July 15. Tesla (TSLA) – Get Tesla Inc Report , which split its stock in August of 2020, will put its proposed 7-for-1 adjustment to a shareholder vote on August 4.
Amazon shares were marked 2.05% higher in early afternoon trading Monday to change hands at $125.01 each. On a split-adjusted basis, the stock’s new all-time high is $188.65 each, while its March 2020 low is $81.30 each.
The stock is down around 6.3% since the split was announced on March 9, compared to a 6.1% decline for the tech benchmark Nasdaq.
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Curiously, Amazon — as well as its peers — have targeted broader investor access as part of the motive behind the split, just as retail investors are starting to pull away from beaten-down stock markets.
Earlier this month, Goldman Sachs analyst David Kostin noted that around $26 billion has flowed out of U.S. equity mutual funds and exchange traded funds over the previous seven weeks, and theorized that retail investors had, in effect, sold all of the stocks they had bought over the past two years.
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