It is official: Amazon (AMZN -1.08%) just completed its first stock split since 1999.
On Monday, the e-commerce giant gave investors 20 shares for every previously held share, and consequently the single share price plummeted. After years of trading in the $1,000 range, it seems odd that Amazon stock is only around $120. But even though a single Amazon share price is a lot lower than it was last week, investors shouldn’t be fooled. The stock is no cheaper than before and the value proposition is the same as it was last week before the split was announced.
While the stock split itself doesn’t really matter, there are a number of good reasons to buy Amazon stock now. Let’s take a look at a few.
1. The stock is cheap
Amazon stock isn’t cheap because of the stock split. It’s cheap, having fallen by a third since its peak last fall, and its earning potential is as strong as ever.