Amazon shares continue to rally after the ecommerce giant went ahead with its 20-for-1 stock split this morning.
The move, which took shares down from Friday’s closing price of $2,440 to around $127, is expected draw in new investors and reward current holders with returns.
The company first reported the plan in March, which now means that each investor is set to receive 20 shares for every share they own.
At the time, analysts at Hargreaves Lansdown said the move spoke volumes about how the world of trading had changed.
“While such a move doesn’t mean too much for existing shareholders, it makes individual shares more accessible to everyday investors,” said Sophie Lund-yates, equity analyst at Hargreaves.
“The existential rise of low and zero-fee trading apps means stock-splits are more important than they have been for a while.”
The move from Amazon follows a similar move from Google parent company Alphabet which announced in February it would be pushing ahead a 20 to one share split, while Apple and Tesla have both made similar moves in the last two years.
Shares of the firm have fallen 12 per cent since first unveiling the plan, but were trading at $126.94.
Like many tech firms, Amazon’s stock has taken a battering in recent months following a broader market selloff in the tech space.
In February, Google parent company Alphabet announced it would be pushing forward with a 20 to one share split, while Apple and Tesla both making similar moves in the last two years.
Share splits notably have no fundamental effect on share value.