Amazon share trading

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Yesterday evening, before the market closed, a rumour leaked out that the Amazon share was about to be split. This speculation was linked to the announcement of the quarterly figures for the fourth quarter of 2020. The figures that Amazon presented exceeded all expectations. But something didn't happen: no Amazon stock split was announced.

On Thursday, 29 April 2021, Amazon announced its figures for the past quarter. As part of the announcement of the quarterly results, investors speculated that Amazon would also announce a stock split. In the course of this, the Amazon share price rose sharply in advance. But there was no longer any talk of an Amazon stock split, as the Americans call it.

  • Investors speculated not only on a fantastic quarterly balance sheet but also on an Amazon stock split.
  • In the days before the Amazon share price rose strongly
  • The figures were excellent, but there was no talk of a stock split, yet the Amazon share price rose after trading hours.
  • A stock split would have no fundamental impact on the company itself 

The last Amazon stock split was more than two decades ago. So far, there have only been three stock splits at the company. The first stock split was on 02 June 1998 (at a ratio of 2:1), the second on 05 January 1999 (at a ratio of 3:1) and the third and so far last on 02 September 1999 (at a ratio of 2:1).

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What is a share split?

In a stock split, the existing shares are split according to a fixed ratio, i.e. divided. Amazon stock split. A 2:1 stock split means that after the split, the shareholder has two shares in his securities account instead of just one. This does not mean, however, that he now has twice the share value.

In the same breath - at least mathematically - the share price is also divided in this ratio. In the above example, this would therefore be a halving of the share price. The ratio in which a stock split takes place is decided by the company.

  • In a stock split, the outstanding shares are divided in a fixed ratio
  • However, the value of the new shares taken together is worth the same as before 

Let's assume that a share costs 100 euros before a split. For example, the investor in owns exactly one share in the securities account. Now there is a stock split at a ratio of 2:1, so he gets two shares for one old share.

After the split, he has 2 shares for 50 euros each in his securities account. Nothing has changed in the value of his securities account. Of course, the share is still traded on the stock exchanges, which is why a share will never have exactly the calculated value after a split, but it will at least be fairly close to this mark.

Why do investors speculate on an Amazon stock split?

Investors speculate in login Exness on an Amazon stock split every now and then because the stock has already run very far and is currently around 3,400/3,500 US dollars. So if you want to buy a single Amazon share, you have to pay 3,400 dollars (about 2,800 euros). To make the share at least visually a little cheaper, investors speculate that Amazon will split the shares, for example, in a ratio of 10:1.

Then one Amazon share would currently cost 340 dollars instead of 3,400 dollars. Another reason why the stock market speculated on a stock split at Amazon was its inclusion in the Dow Jones.