How stock split may affect Amazon?

US retail giant Amazon AMZN.US recently announced a planned share split. The operation will aim to lower the current high share price, which of course will not affect the nominal value of shareholders' shares:

• Analysts expect Amazon to post earnings of $137.63 billion in revenue for Q1 2022, and investors will be watching to see how macroeconomic factors impact revenue growth and consumer demand;

• This will be Amazon's first stock split since 1999, with investors receiving 20 shares for every one share they own. This means that one Amazon share will probably be worth approximately USD 170 compared to nearly USD 3400 at present. 

• The financial results for Q4 2021 were not satisfactory and caused downward correction. Currently buyers are trying to erase recent losses;

• Shares of 'BigTech' companies including Microsoft (MSFT.US), Apple (APPL.US) and Alphabet (GOOG.US) resumed upward move;

• News of the planned stock split was released yesterday by Tesla (TSLA.US), the news was met with a euphoric market reaction;

• By increasing the number of shares, Amazon's stock is expected to become more accessible which could potentially encourage smaller investors;

• The US wholesale leader Costco COST.US  favoured by Warren Buffet's fund and e-commerce giant Shopify (SHOP.US) are also expected to announce stock split. The company has been the beneficiary of pandemic sales trends;

Majority of big tech stocks rebounded sharply in recent days. Source: Bloomberg

Amazon (AMZN.US), D1 interval. The company's stock price has been moving in a downward trend since December 2021. On the chart we can observe the formation of a double bottom. Recent declines were caused by the attack of Russia on Ukraine, however since then, the price resumed upward move and broke above resistance marked with the 61.8 Fibonacci retracement of the last downward correction. Potentially the bullish impulse may accelerate towards 3550 USD, which coincides with the 78.6 retracement and ATH from autumn 2021. Source: xStation5