On June 6, e-commerce giant Amazon (AMZN 0.41%) completed its 20-for-1 stock split that brought the stock price down to $125 per share. The stock now trades at $130 a share and is up 4% since the split. But while the lower price may have pushed interest rates higher in the short term, Amazon’s solid fundamentals could fuel continued growth over the long term. Let’s examine some reasons for this.
Are Amazon Stocks Really Cheaper?
A stock split occurs when a company multiplies its number of shares to lower its share price without changing its market capitalization (the value of all outstanding shares). While this process doesn’t affect valuation, it can make a stock more accessible to smaller investors. However, Amazon’s split comes at the end of a 23% year-to-date decline, making the shares more attractive to investors looking for a deal.
How many Nasdaq Company has faced downward pressure on Amazon due to macroeconomic factors such as inflation and rising interest rates, which tends to…