https://www.cnbc.com/2022/03/09/amazon-announces-20-for-1-stock-split-10-billion-buyback.html Skip Navigation logo * watchlive logo Markets * Pre-Markets * U.S. Markets * Currencies * Cryptocurrency * Futures & Commodities * Bonds * Funds & ETFs Business * Economy * Finance * Health & Science * Media * Real Estate * Energy * Climate * Transportation * Industrials * Retail * Wealth * Life * Small Business Investing * Invest In You * Personal Finance * Fintech * Financial Advisors * Options Action * ETF Street * Buffett Archive * Earnings * Trader Talk Tech * Cybersecurity * Enterprise * Internet * Media * Mobile * Social Media * CNBC Disruptor 50 * Tech Guide Politics * White House * Policy * Defense * Congress * Equity and Opportunity CNBC TV * Live TV * Live Audio * Business Day Shows * The News with Shepard Smith * Entertainment Shows * Full Episodes * Latest Video * Top Video * CEO Interviews * CNBC Documentaries * CNBC Podcasts * CNBC World * Digital Originals * Live TV Schedule Watchlist Investing Club * Newsletter * Morning Meeting * Trade Alerts * Trust Portfolio PRO * Pro News * Pro Live * Subscribe * Sign In Menu * Make It * USA * INTL * watchlive Search quotes, news & videos Watchlist SIGN IN logo Markets Business Investing Tech Politics CNBC TV Watchlist Investing Club PRO Menu Tech Amazon announces 20-for-1 stock split, $10 billion buyback Published Wed, Mar 9 20224:42 PM ESTUpdated Moments Ago Annie Palmer@annierpalmer WATCH LIVE Key Points * Amazon on Wednesday said its board of directors has approved a 20-for-1 stock split. * It's the first split since 1999 and the fourth since Amazon's IPO in 1997. * The company also said its board has authorized Amazon to buy back up to $10 billion worth of shares. Andy Jassy, chief executive officer of Amazon.Com Inc., during the GeekWire Summit in Seattle, Washington, U.S., on Tuesday, Oct. 5, 2021. David Ryder | Bloomberg | Getty Images Amazon announced its first stock split since the dot-com boom, telling investors on Wednesday that they'll receive 20 shares for each share they currently own. The stock soared 6% in extended trading. The company also said the board authorized it to buy back up to $10 billion worth of shares. Stock splits are cosmetic and do not fundamentally change anything about the company, other than possibly making the shares accessible to a larger number of investors because of their cheaper price. Were the split to happen as of Wednesday's close, the cost of each share would go from $2,785.58 to $139.28, and each existing holder would get 19 additional shares for every one they own. Amazon is the latest highly valued tech company to pull down the price of each share through a split. Google parent Alphabet announced a 20-for-one split in February. In mid-2020, Apple disclosed plans for a four-for-one split, and Tesla told investors it was instituting a five-for-one split. CEO Andy Jassy has faced a rough start to his tenure, which began in July. The stock was the worst performer among Big Tech companies last year and has dropped 16% so far in 2022, joining a decline across the sector. Amazon just reported its slowest rate of growth for any quarter since 2001 and, according to a recent Wall Street Journal report, billionaire activist investor Dan Loeb, who's been adding to his Amazon holdings, told investors on a private call that he sees about $1 trillion in untapped value at the company. Amazon, which has recently made adjustments to its compensation strategy, said the latest change is targeted at helping corporate staffers. "This split would give our employees more flexibility in how they manage their equity in Amazon and make the share price more accessible for people looking to invest in the company," an Amazon spokesperson said in a statement. Last month, Amazon boosted its maximum base salary for corporate workers to $350,000, up from $160,000, as it contends with an increasingly competitive labor market. Historically, Amazon has relied on generous stock awards to attract talent, but the shares underperformed in 2021, and employees have pressured the company to make changes. Distributions from the stock split will be made to Amazon shareholders at the close of business on June 3, and trading will begin on a split-adjusted basis on June 6. Arrows pointing outwards Amazon shares since last split in 1999 CNBC This is Amazon's fourth stock split since its IPO in 1997, and its first since 1999, when the company was a fraction of its current size. It also split on a two-for-one basis on June 2, 1998; a three-for-one basis on Jan. 5, 1999; and a two-for-one basis on Sept. 2, 1999. Amazon shares are up over 4,300% since the last split was announced. -- CNBC's Ari Levy contributed to this report. WATCH: Jefferies Brent Thill says split is a good outcome for investors VIDEO2:3502:35 Jefferies' Brent Thill says Amazon stock split is a good outcome for investors moving forward Closing Bell logoTV WATCH LIVElogoWATCH IN THE APP UP NEXT | ETListen logoTV WATCH LIVElogoWATCH IN THE APP UP NEXT | ETListen logo * Subscribe to CNBC PRO * Licensing & Reprints * CNBC Councils * Supply Chain Values * CNBC on Peacock * Advertise With Us * Join the CNBC Panel * Digital Products * News Releases * Closed Captioning * Corrections * About CNBC * Internships * Site Map * Podcasts * Ad Choices * Careers * Help * Contact * * * * * * * News Tips Got a confidential news tip? We want to hear from you. 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