Amazon Stock Split 2025: Shares Now at $120 After 20-for-1 Split
Explore how Amazon's recent 20-for-1 stock split in 2025 has made shares more accessible at $120 each, boosting market interest and aligning with trends from other tech giants.
Amazon's 20-for-1 stock split officially took effect today, setting the new share price at $120.
In 2024, Amazon (AMZN) executed its much-anticipated 20-for-1 stock split, a move first announced on March 9. Prior to the split, shares traded above $2,000 each, but post-split, the price adjusted to $120 per share. On the first day of trading after the split, shares closed 2% higher at $124.80, reaching an intraday peak of $128.70. Remarkably, Amazon's stock had already gained nearly 8% in the five days leading up to the split, despite the split itself not increasing shareholder value.
Following Amazon's lead, Alphabet (GOOGL) has announced a similar 20-for-1 stock split scheduled for July 2024, and Tesla (TSLA) has revealed plans to split its stock, though details on timing and ratio remain undisclosed.
These stock splits could enhance the likelihood of these companies being included in the Dow Jones Industrial Average. The Dow is price-weighted, meaning high-priced shares disproportionately impact the index. By lowering share prices, these splits reduce individual stock influence, making it easier to add them to the index. Additionally, the splits make shares more affordable for retail investors seeking to enter the market.
Caleb Silver, Editor-in-Chief at Investopedia, notes, "Amazon's stock split arrives at a pivotal moment for investors. Despite a 23% drop year-to-date and a 20% decline over the past year, the lower share price post-split may attract price-conscious buyers eager to invest in Amazon."
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