Technology giant Amazon conducted its first stock split in 23 years. The company is now trading over 3% higher.
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Thanks to the stock split, the price has dropped twentyfold, lowering the entry threshold for retail investors. Until now, Amazon's shares were expensive, with more than $2,200 per share. At the beginning of the year it was close to $4,000;
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Shares are once again trading at triple-digit levels for the first time in nearly five years. According to Bank of America analysts, stock splits usually lead companies to higher profits.
- The stock split was conducted in the ratio of 20:1, which means that for each 'old' share investors received 20 new ones, which directly did not affect the result on the positions and the value of the shares held;
Amazon remains a giant when it comes to both the e-commerce and e-commerce sectors as well as cloud computing and technology services, including Amazon Web Services. Since the beginning of the year, Amazon's stock has lost more than 26%, nearly double that of the S&P500 index, and is now continuing its rebound. In the rush of panic, the discount relative to the beginning of the year reached nearly 46%. Fears about the condition of consumers in the U.S. in the face of rising interest rates and galloping inflation added fuel to the decline of Amazon shares. Alphabet (GOOG.US) is another company that has been carrying the stock split.
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Amazon (AMZN.US) shares, W1 interval. Amazon's stock has experienced massive gains during the ongoing COVID-19 pandemic and the associated rise in e-commerce and the popularity of streaming platforms, which the company also offers. Demand for cloud computing services is also on the rise. As a result of problems in supply chains and galloping inflation, sentiment towards Amazon's shares has deteriorated since the beginning of the year, causing the company to suffer a deep discount, while its financial results also turned out to be below expectations. However, the declines stopped near the Fibonacci retracement of 71.6, at levels close to 100 USD, from where we observe a definite improvement. Currently, the stock has exceeded 61.8 Fibo retracement. The first resistance is at the levels near 150 USD, where in turn 38.2 Fibonacci retracement is located. In case of a decisive deterioration of sentiment the bottom may be marked by psychological levels of 100 USD, where supply was previously stopped. The next demand zone is located at 80 USD mark, at the March 2020 levels. Source: xStation5
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