What's going on with Amazon's stock split?

March 9 (Reuters) - Amazon.com Inc said on Wednesday its board approved a 20-for-1 split of the e-commerce giant's common stock and authorized a $10 billion buyback plan, sending the company's shares up 7% in extended trading. This is the first stock split by Amazon since 1999 and will give investors 19 additional shares for every share they hold.

Does Amazon have a new share price?

Amazon has a new share price, but investors' approach should stay the same. Back in March, e-commerce giant Amazon ( AMZN -0.57%) announced that it would conduct a 20-for-1 stock split, and in May, shareholders voted to approve it. The split has now officially taken effect, but what has actually changed?

How does a stock split affect the value of a company?

That can help inflate the value of a company’s shares by effectively pulling the supply of stock out of the market. Shares of Amazon (AMZN) rose 8% in extended trading. Major company stock splits have become very in vogue in recent years. Apple and Tesla announced splits in 2020.

How did Amazon stock revalue?

Amazon shares were revalued to $120 per share, after trading well above $2000 per share prior to the stock split. Shares closed 2% higher at $124.80 in Monday trading, after hitting an intraday high of $128.70 early in the session.