Will Amazon Stock Split in 2024? AMZN Split Date & History

Will Amazon Stock Split in 2024?

No. Amazon (AMZN) isn’t expected to split its stock in 2024 because it only went through this process two years ago. Amazon’s last stock split happened in June 2022.

However, stock market analysts believe it could be a possibility over the longer term if the company’s share price continues to rise.

The AMZN stock price has soared 47% over the past year from $125.31 to $184.06, as the stock market closed on June 17, 2024.

Why Doesn’t Amazon Split Its Stock?

The question posed by many investors is: Will Amazon stock split again in 2024? The answer is that this is unlikely over the short term.

The company only carried out a 20-for-one stock split in 2022. This saw existing Amazon shareholders receiving 19 additional shares for each one owned.

The Amazon stock price before the split was more than $2,000, but it dropped to around $122 after the move became effective.

Susannah Streeter, head of money and markets at Hargreaves Lansdown, told Techopedia:

“Given that the share price at the last stock split was over $2,000 and today it’s hovering around $183, a fresh stock split looks unlikely.”

What Does This Mean for Investors?

A 20-for-1 stock split means that the price investors pay for a share of the company is 20 times less than it was before the split.

However, the AMZN stock price has been rising since the split. In fact, it’s risen by almost 60% over the past two years to its closing price of $184.06 on June 17, 2024.

However, Danni Hewson, head of financial analysis at AJ Bell, doesn’t believe this hefty price tag is deterring investors.

She told Techopedia:

“It is expensive, especially for retail investors looking to get in on the party. But this is a business that’s matured into its skin, and it’s only just begun to flex some of its tech muscles that look set to increase profitability further.”

Hewson’s Amazon stock split prediction is that it could be a possibility at some stage. She added:

“A stock split must be somewhere on the boardroom table, but with almost all analysts rating it a buy or strong buy, it’s unlikely to be top of the to do list.”

Amazon Stock Split History

So, how many times has Amazon stock split?

Well, anyone looking at the Amazon stock split history will see it’s happened four times since the company’s initial public offering back in May 1997.

Amazon had split its stock three times over the first few years but then had left it untouched for the best part of a quarter of a century.

The last Amazon stock split date was June 3, 2022. The company had announced plans for a 20-for-one stock split almost three months earlier.

However, there had been some Amazon stock split rumors swirling around the marketplace more than six months before the company’s official announcement.

Amazon Stock Split History

Will Amazon Ever Split Its Stock Again?

Analysts believe that an Amazon stock split 2024 is unlikely but aren’t ruling out one if the company continues to perform well.

Dan Romanoff, senior equity analyst at Morningstar, told Techopedia:

“Given the hyper growth phase for Amazon is in its past, I don’t think we’ll see another stock split within any near or medium term time horizon.”

However, over the longer term it could be a different story. “Assuming the shares continue to appreciate, then I’m sure the board would consider that,” he said.

Romanoff also emphasized how much shares would need to rise in order for the company to come under pressure to carry out a fifth split. He pointed out:

“If the stock was to appreciate 12% annually, it would still only trade at around $1,800 in 20 years, which would still be below the recent split price.”

Outlook for Amazon Stock

Whether AMZN stock continues to rise will largely depend on the company’s performance, and the recent first-quarter results were encouraging.

It revealed enterprise cloud spending was reaccelerating, and Amazon’s advertising business was booming, according to Susannah Streeter at Hargreaves Lansdown.

“The cost-cutting mission in retail has also helped profits rebound,” she said. “US consumer spending has been relatively buoyant, helping Amazon’s performance, but there was slightly conservative guidance for the second quarter.”

Streeter believes this is understandable, given the uncertain consumer environment. In fact, she pointed out, there were signs of consumer confidence weakening in early June.

“However, there is still huge potential for Amazon Web Services as companies increasingly harness new technologies and infrastructure,” she said. “The substantial investment in AWS’ generative AI products speaks volumes to the expected pipeline of demand.”

AMZN stock is currently rated as a ‘buy’ based on the views of 44 Wall Street analysts compiled by MarketBeat. Their consensus view is that the stock could reach $213.82 over the coming year, which would represent a 16.17% upside over the $184.06 closing price on June 17, 2024.

However, opinions were divided. The most optimistic believe the stock price could even reach $245, while the lowest forecast is for it to slip back to $140.

Top 5 Tech Stocks With Frequent Stock Splits

A number of popular technology companies have undergone stock splits. Here are five of the most well-known businesses.

What Is a Stock Split?

A stock split happens when a company divides its existing high-value shares into a larger number of shares with a lower value.

The reasons for such a move include making the stock more affordable for a wider number of shareholders and employees to buy.

Why Are They Important to Investors?

Stock splits make buying shares in a company easier and more affordable because there are more of them, and they’re cheaper.

The Bottom Line

Will Amazon stock split? That is the question on many investors’ minds in the wake of the technology company’s recent share price hikes.

Amazon’s popularity with investors is illustrated by the fact it’s currently the fifth-largest company in the world, by virtue of its $1.9 trillion market capitalization.

The combination of investors wanting to buy into the stock and the company continuing to perform well is likely to drive the price up over time.

Analysts believe such a scenario could result in Amazon’s management team deciding that a fifth split is in everyone’s interests. However, AMZN’s price will need to increase substantially before the next Amazon stock split could happen.

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