Why This Investor Says Amazon Stock Is 'Worth More Than It's Trading For' Following Split

Since 1980, companies that enact stock splits are typically up 25% a year after the split takes effect, according to research from Bank of America that was cited Monday on CNBC's "Fast Money Halftime Report."

Boston Private's Shannon Saccocia expects this statistic to hold true in the case of Amazon.com Inc AMZN, which began trading on a split-adjusted basis Monday following a 20-for-1 stock split. Yet her thesis doesn't have much to do with the split itself.

What To Know: Shareholders of record on May 27 were eligible to receive 19 additional shares for every one share held on June 3.

Although Saccocia acknowledged the stock split may bring some new investors into the name, she believes Amazon is poised to outperform the overall market because of its valuation.

"Continually, investors are looking too much at the e-commerce side of Amazon," Saccocia said. "If you strip out the e-commerce side of Amazon, AWS is worth more than it's trading for now."

Related Link: Sum Of Parts Suggests Shareholders Could Get Amazon's Retail Business For Free

Amazon shares have fallen more than 25% since the start of the year after underperforming the market for most of 2021. The stock split increases the accessibility of Amazon shares, but Saccocia said she expects AWS to be the real driver of the stock moving forward.

"[My] long-term thesis is that that part of the business is going to continue to grow very profitably," she said.

See Also: Here's How Amazon's Chart Looks Following 20-1 Stock Split

AMZN Price Action: Amazon shares have a 52-week high of $3,773.07 and a 52-week low of $2,025.20.

The stock was up 3.15% at $126.20 Monday afternoon, according to data from Benzinga Pro.

Photo: courtesy of Amazon.