Amazon (AMZN) Investors Should Learn to Live with Stock Split Envy

August 25, 2020 1:04 PM EDT

Get inside Wall Street with StreetInsider Premium. Claim your 1-week free trial here.

There could not be a better time for Amazon (Nasdaq: AMZN) to split its stock. It has been twenty years since its last split, and shares are trading at sticker-shock-levels, and not just for retail investors. Just a single round lot of 100 shares of the tech behemoth demands a cool $330,000.

In recent weeks, tech peers Apple (NASDAQ: AAPL) and Tesla (NASDAQ: TSLA) announced stock splits and the outcome has been nothing short of incredible. Apple climbed from about $385 to $500 and Tesla went from $1400 to $2000.

The split-envy is palpable. Even for a company that is as beloved on Wall Street and throughout the investment community as Amazon, people are getting a little ornery.

Less than a week ago, Amazon and Apple were in a race to become the first 2 trillion-dollar company. Thanks to its stock split and a sharp rally in its shares, Apple has stolen the prize. Meanwhile, Amazon languishes, with its relatively paltry $1.65 trillion market cap.

In response to an inquiry about the persistent rumors regarding the company’s plans for a potential stock split, a spokesperson for Amazon told, “we don’t have anything to share beyond what’s on the IR website.”

Indeed, Amazon’s investor relations website points out the obvious. The company last announced a stock split on July 21, 1999. It probably will not again any time soon.

Serious News for Serious Traders! Try Premium Free!

You May Also Be Interested In

Related Categories

Stock Splits

Related Entities