Amazon announces $10 billion share buyback as well as 20-for-1 stock split 😃
Thursday, 10th March 2022 by Gotrade
Hey Gotraders,
Tech giant Amazon (AMZN) has announced that they plan to offer a 20-for-1 stock split. This is their first split since 1999 and the fourth since they went public in 1997.
What is a stock split? A stock split is when a company increases the number of its outstanding shares to boost the stock's liquidity. One share of Amazon costs about $2,785. A 20-for-1 stock split means that investors will receive 19 additional shares for every share they own. An investor who originally owned one share of Amazon that costed $2,785, will own 20 shares of Amazon that costs $139.25 each after the stock split.
Distributions from the stock split will be made to Amazon shareholders at the close of business on June 3, and trading will begin on a split-adjusted basis on June 6.
That’s not all. They also announced that their Board of Directors has authorized up to $10 billion worth of share repurchases. Looks like they have excess cash and are choosing to reinvest in themselves, which will ultimately boost returns to shareholders.
Why is this important? Amazon is not the first company to announce a 20-for-1 stock split. Google (GOOG) did the same thing just last month.
A stock split makes a company’s stock more affordable to retail investors.
Also, the stock split could also be setting the stock up as a potential new addition to the price-weighted Dow Jones Industrial Average.
Shares of Amazon closed at $2,785.58, up 2.40% for the day. Nice!
📉 $400 million written off Shell’s books as company exits Russia 🙈
Four hundred million. That’s the amount that will be wiped off Shell’s (SHEL) books. Shell had previously announced that they had projects worth $3 billion in Russia. They will now be wiping off $400 million in Russian downstream assets as they exit Russia. Ouch!
"It is expected that these decisions ...will impact the carrying value of the related assets and lead to recognition of impairments in 2022" - Shell.
Shares of Shell closed at $51.71, down 2.32% for the day.
📈 There may soon be a PlayStation version of Roblox 🎮
Attention, video-game lovers! There may be a PlayStation version of Roblox (RBLX) soon. How do we know this? Well, Roblox is looking to hire a PlayStation console senior software engineer who will be able to develop a Roblox app for PlayStation.
Roblox’s CEO had previously hinted that the Nintendo Switch, Sony PlayStation and Oculus Quest all “made perfect sense for Roblox” in the long term.
“What you’re seeing right now is an incredible focus on the phone by us, which we believe is an incredibly difficult form factor and the most difficult form factor for that immersion… But these are all logical platforms and at the same time, we won’t share any ship dates for them” - David Baszucki, Roblox CEO.
Shares of Roblox closed at $44.38, up 5.89% for the day.
Top movers & shakers 🎢
What else is making headline news 📰
Tesla (TSLA) hikes China, U.S. prices for Model 3 and Model Y cars.
Sony’s (SONY) PlayStation and Nintendo suspend sales in Russia over Ukraine war.
Indonesia Energy (INDO) shares down 7%, company files for sales by shareholder.
This CEO has been buying more than $1b of his own stock over the last year.
Popular companies releasing earnings this week 💰
Thursday: Oracle (ORCL), JD.com (JD), Rivian (RIVN), DocuSign (DOCU), Wheaton Precious Metals (WPM), Ulta Beauty (ULTA), Sibanye Stillwater (SBSW), AEGON (AEG), National Beverage (FIZZ), Nano Dimension (NNDM), MoneyLion (ML)
Friday: WeWork (WE)
A company’s market value may fluctuate considerably around the time that the earnings report is expected to be published. Stock prices may rise or fall according to analysts' speculative estimates, released prior to the actual earnings announcement.
The earnings season can be a time of great opportunity since better-than-expected figures could cause a company’s stock to greatly increase in value. Worse-than-expected results could have the opposite effect.
That’s all from us for now.
Signing out,
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The legal stuff 🤓
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