Tech giant Amazon plans to split its stock for the first time in more than two decades.
The move will see the end of the an era for four-digit stock prices for the biggest U.S. technology companies.
Amazon wants to boost its outstanding shares by a 20-to-1 ratio, joining other tech giants like Alphabet and Apple, who have turned to splits to make their stocks more attractive.
That news combined with a $10 billion share-buyback authorisation sent Amazon shares up as much as 11% in New York.
“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,” Amazon said in a statement.
Why split stocks?
Companies split their stocks for numerous reasons: Splits can put their stock within the reach of smaller, individual investors. It helps companies gain liquidity and splits can create more demand for a company’s stock.
It means stock in Amazon could become 20 times less expensive.
