Amazon Goes Nuclear in 20:1 Stock Split & $10 Billy Buyback
ALL ABOARD THE BEZOS LIQUIDITY HYPE TRAIN. In a debatable moment of desperation from getting absolutely decimated this year, Amazon announced a 20:1 stock split, and a $10 Billion share buyback. The stock jumped ~7% on the news after-hours.
Let it be known that the last time Amazon announced a stock split was back in September of 1999, right before the entire market bled over 40% over the next two years in the dot com bubble. Let’s hope history doesn’t repeat itself, I suppose. And for those curious about the presumable drawdown Amazon saw subsequently following that split…
Yikes.
Amazon is ostensibly trying to catch a ride on the liquidity hype train (a phrase coined by yours truly following the Tesla 5:1 stock split in August 2020).
With their stock caught up in the fiery mess of selling through 2022, Amazon is looking for some much needed support from the fatigued retail army. This is an interesting tactic as it appears that their recent increase in membership rates from $119 to $139 a year didn’t seem to cut it for them. Let’s see how this one plays out…