(CNBC) Shares of Amazon rose more than 6% on Thursday after announcing a stock split that will give investors 20 shares for each unit they currently own.
Amazon stock was also boosted by a theorized repurchase of $10 billion worth of shares.
Amazon said that the stock split would give its staff more flexibility on how they manage their equity in the company while making the stock more accessible to investors.
The stock split comes at a time CEO Andy Jassy is facing a rough start to his tenure, with Amazon, the worst performer among its Big Tech peers in 2021. The stock is down 16% so far this year.
The announcement by Amazon comes only a month after Google’s parent Alphabet also announced a 20-for-one split in February to make the shares available to the masses. Apple and Tesla are other companies also seeking a stock split.
The stock split is the fourth by Amazon since its 1997 IPO and the first since 1999. The proceeds from the split will be distributed to the shareholders at the close of business on June 3. Trading on a split-adjusted stock will start on June 6.
AMZN: NASDAQ is up +6.93% on premarket.
