Well, maybe not really a gimmick, but Amazon is trying to allure individual investors.
On Monday shares of e-commerce giant Amazon (NASDAQ: AMZN) experienced an increase of about 4% after the company’s 20-for-1 stock split went into effect. Amazon has split its stock four times since its initial public offering (IPO) back in 1997. Generally, splitting a stock can increase investor enthusiasm surrounding a stock. Splitting a stock can allow investors to buy shares at a smaller price.
Stock splits don’t have much effect on the valuation. Essentially, splits are like exchanging a $20 bill for two $10 bills. And as Mark Lehmann, CEO of JMP Group, said:
Stock splits are usually a sign of optimism. Very few companies split their stock in anticipation of things going poorly. It’s an example of what’s reflected in the entire market.
On Friday’s market close, Amazon’s reported a share price of $2,447. That was before the company’s stock split. With the split, shares opened up on Monday, June 6, at $125.25. Before the split, Amazon shares were expensive — you would have to invest almost $3,000 to just get one of them.
I mentioned earlier how splitting a stock can drum up more interest in buying shares — and that’s exactly what Amazon wants to do, especially since the company’s shares have tumbled this year. Market volatility hasn’t been kind to technology stocks this year. Despite the slight increase after the stock split, Amazon shares have been down about 10% since March.
Amazon wants to make its shares more accessible to potential investors while also giving its employees more flexibility on how they manage their equity in the company. The tech sector has been experiencing a sell-off in the past few months, so buying one share at a price of close to $3,000 doesn’t seem appealing to the individual investor.
According to recent data analysis done by the Chicago Board Options Exchange:
Evidence suggests that stock-split events drive additional participation from retail investors, especially in securities with larger market capitalization. Volume in mega-cap equities initially spiked 342% the week immediately after the split.
The report from the CBOE also referred to Apple’s recent stock split saying:
Apple’s unadjusted post-split customer volume increased by 92% averaging 1.7 million daily contracts executed, compared to 0.9 million contracts pre-split.
Even Microsoft proposed plans for a stock split back in February. Since then shares have been down 17%. While shares of Amazon appear to be cheaper now, they’re actually just as expensive and could be just as hard to get a big profit out of.
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It contains full details on why dividends are an amazing tool for growing your wealth.
Amazon wants you to believe this smaller price will be an opportunity for investors like yourself to buy shares. But there’s another way for people to earn a profit from Amazon that doesn’t involve buying stock — even if the price tag appears to be appealing.
It’s important to point out that Amazon’s investors have lost a collective $458 billion so far in 2022. However, a group of investors are getting paid because of this alternative way to profit from Amazon.
This other way involves a law published in 1952 during President Harry S. Truman’s administration. The law has made it possible for many Americans to profit — and no one can stop it. And the next payout date is one week away.
You’re probably wondering what the catch is. Well, to be perfectly honest, there isn’t one.
Amazon is legally obligated to pay, and it’s been a well-kept secret for years. Only a small portion of Americans are familiar with this and, more importantly, know how to earn a profit from it.
If you want to tap into Amazon’s massive growth, watch this video.
The video outlines how you can start earning a profit from Amazon up to four times a year. You’ll also discover other American companies that are required to deliver similar payouts.
I know markets have been challenging and earning a profit seems impossible or maybe not even worth it right now, but that’s inaccurate. Companies like Amazon aren’t going anywhere. This company is an e-commerce behemoth that transformed the way we shop and think about shopping. Learning about how you can earn a passive income based on Amazon’s wealth will be well worth it.
Learn how you can start collecting your slice of “Prime Profits” right now, check out the video here.
With that being said, you’re going to want to act fast on this if you are truly interested in it.
The next payout is happening in one week, on June 14. It only takes two minutes to get set up, and once you’re in, you won’t have to do anything again. You can sit back and enjoy earning a passive income.
Despite what you might hear from the media, profit opportunities are abundant. And I'm here to help deliver those opportunities to you.
Until next time, Monica Savaglia Monica Savaglia is Wealth Daily’s IPO specialist. With passion and knowledge, she wants to open up the world of IPOs and their long-term potential to everyday investors. She does this through her newsletter IPO Authority, a one-stop resource for everything IPO. She also contributes regularly to the Wealth Daily e-letter. To learn more about Monica, click here.
