Amazon (NASDAQ:AMZN) stock shot higher in after-hours trading on some big news. Following in the footsteps of other Silicon Valley giants, the e-commerce company said it would enact a 20-for-1 stock split. So when is the Amazon stock split date? And what will this ultimately mean for AMZN stock?
Today, investors learned this big news via a filing with the U.S. Securities and Exchange Commission (SEC). In it, Amazon shared that its board of directors approved a 20-for-1 stock split.
What does this actually mean for AMZN stock? Essentially, after the stock split, any investor who held one share of AMZN would then have 20 shares. Using today’s closing price, that would also mean that one share would go from $2,785.58 to $139.28.
Stock splits are not entirely uncommon. In fact, Alphabet (NASDAQ:GOOG, NASDAQ:GOOGL) announced one of its own in February 2022. Companies can break up higher-priced shares, ultimately making them more accessible to investors. You can read more about the Google stock split here.
Beyond changing the share price, investors should note that the stock split will not have other fundamental impacts on AMZN stock.
When Is the Amazon Stock Split Date?
One big question that many AMZN stock fans likely have is when is the Amazon stock split date?
According to the SEC filing, shareholders will actually need to approve the stock split first. They will have a chance to vote on it during an annual meeting on May 25, 2022. If all goes well, there will be a few other key dates to watch.
The first will be May 27, 2022, which will serve as the record date. That means if you want to participate in the stock split, you must own AMZN stock by May 27. Individual accounts will start to update to reflect the stock split by June 3, 2022. Finally, AMZN will start trading on what is called a split-adjusted basis by June 6, 2022. That is when investors will start to notice the lower share price.
What Will Happen to AMZN Stock?
Investors seem to like the news, as AMZN stock is moving higher in after-hours trading. They may also be reacting positively to a second update in the SEC filing. Wall Street also learned on Wednesday that the board of directors has approved a measure to repurchase up to $10 billion in Amazon stock.
Keep a close eye on Amazon and its Big Tech peers over the coming days. There is already speculation brewing about which companies could split their stocks next.
On the date of publication, Sarah Smith did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.
Sarah Smith is the Editor of Today’s Market with InvestorPlace.com