Is Amazon a Buy After the Stock Split?


On June 6th Amazon (AMZN -0.80%) completed a 20-for-1 stock split, taking the stock price to around $100 at the time of writing. While this change doesn’t reduce the company’s $1.1 trillion market cap, it does make the stock more accessible to investors who may not be able to bring thousands to market.

Today, let’s discuss the pros and cons of investing in the stock.

First-quarter earnings weren’t as bad as they seem

The ubiquitous online retailer has evolved through its brick-and-mortar subsidiary into a one-stop shop for everything from electronics to grocery delivery. whole food. Like many companies, Amazon has seen its retail stores come under inflationary pressures, increasing the cost of doing business while eroding consumers’ purchasing power. Weaker-than-expected first-quarter results have also left many investors wondering if it’s time to abandon ship.

Image source: Getty Images.

Amazon posted a net loss of $3.8 billion in the first quarter.

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