Why doesn’t Amazon split its shares?
The price per share of Amazon stock has become unpurchasable at $1436. Why don’t they split the shares? Who is going to invest a fortune just for a few shares as individual investors?
Unpurchasable? Their market cap is 700B they don’t give two shits about someone looking to invest $1000
And why would they do that, most investors buy through fidelity or E*TRADE and other broker where the cost of transaction is 5$ so anyways it is recommended to buy atleast 3k of an individual stock. So price of stock doesn’t matter. No body cares of individual investor who aren’t willing to spend atleast 1-2k
Well.. they may not care of individual investors, but what are the potential disadvantages of splitting their shares, if any?
I’m sure it would cost $13 for the company to do this. Maybe a little more or less. Just minor legal and exchange fees. We don’t book business class to have someone fresh off a plane when they get to Europe. We are frugal. How do customers benefit from a stock split?
Customers benefit because they can buy closer to the exact amount they want now. If an investor has 5k and wants to use it on Amazon, currently they can only get 3 shares worth a little less than 4.5k. If you split, they can get closer to what they actually want. This leads to investors often slightly more into the stock than they would have otherwise
Why distract yourself with financial markets paperwork when you can disrupt real street markets, frugality in thoughts and efforts. Also doesn’t directly affect any of our customers.
Jeff Bezos famous quote ““If you’re going to invent, it means you’re going to experiment, so you have to think long term”. Ditto for investing in Amazon. So if you are investing in amazon stock which are priced $1400+ on a single unit of stock, it always has to be a long term investment. I am really not surprised that the stock has not split.
I hope you know that stock split doesn't change the valuation of the company.. stock split doesn't change any damn thing besides making stock available for someone with just few hundred dollars to invest.. with the help of technology, many brokerage firm allow buying fractional shares to solve that problem.. join Motif brokrage firm and buy 0.5 Amazon stock if you are really waiting for the stock split..
A few weeks ago it was $1600. ~$1400 is a steal!
Yes, because owning 100 shares at $140 each is much more valuable than 1 share at $1400. Math is hard.
OP obviously uses Robinhood
You think they care about individual investors? Institutional investors is where it’s at.