Amazon announced on Wednesday that its board had approved a 20-for-1 stock split and authorized a $10 billion buyback of the internet retailers’ shares, sending shares up more than 6% in after-hours trading.
The split doesn’t necessarily change the value of the company, but an Amazon spokesperson said the split-adjusted share price will make shares more accessible to potential investors and give employees more flexibility in how they manage their equity in the company.
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The stock split, Amazon’s first since 1999, will give shareholders of record as of May 27 an additional 19 shares for each share they already own. Trading under the split-adjusted share price is expected to begin June 6.
Amazon’s stock closed Wednesday at $2,785.58, up 2.4%. Following news of the stock split, shares rose 6.5% in after-hours trading.
Amazon is the latest high-value tech company to announce a stock split. Google parent Alphabet announced a 20-for-1 split in February, and Apple announced a 4-for-1 stock split in 2020.
The stock split is subject to shareholder approval at Amazon’s annual shareholder meeting on May 25.