After the stock split, is now the time to buy Amazon?


Ecommerce Giant Amazon (AMZN -0.24%) executed a 1:20 stock split in June, the first split since 1999. Stock splits don’t change a stock’s fundamental valuation, but a lower stock price can make it easier for individual investors to gain exposure to a company.

Splits often attract a lot of investor attention, sometimes resulting in a buying spree in a stock. Now that a few months have passed since that split, it’s an opportune time to revisit Amazon as a potential investment. Here are three things you should know before making a decision about including it in your portfolio.

1. The stock is attractively valued

Most investors know that 2022 was a tough year for the stock market, and Amazon hasn’t missed the fact. Its shares are down around 28% since the start of the year, but the drop has taken some of the steam out of its valuation. The company’s price-to-sales (P/S) ratio rose above five at the height of the pandemic. With his current…

Source link


Please enter your comment!
Please enter your name here