After months of anticipation Amazon (AMZN 1.99%) eventually split its shares 20-to-1. Many investors are excited about the opportunity to buy more shares of the e-commerce giant at its new, significantly discounted price.
However, experienced investors know that stock splits don’t fundamentally change a company’s value. They simply split a company’s profits into multiple slices. In many ways, Amazon’s 20-to-1 split is like exchanging a $20 bill for 20 $1 bills. The value you hold before and after the split is the same.
Additionally, savvy investors know that Amazon faces a host of serious challenges that threaten to slow its growth and erode its profits. So Instead of Buying, Should You Consider Selling Amazon Stock?
Amazon’s online retail business is struggling
The e-commerce arena has long been dominated by Amazon. More than half of all online retail sales in the US occur on its websites and apps. The situation is similar in many other markets…