Amazon announced on Wednesday that its board had approved a 20-for-1 stock split and authorized a $10 billion buyback of the internet retailers' shares, sending shares up more than 6% in after-hours trading.
The split doesn't necessarily change the value of the company, but an Amazon spokesperson said the split-adjusted share price will make shares more accessible to potential investors and give employees more flexibility in how they manage their equity in the company.
The stock split, Amazon's first since 1999, will give shareholders of record as of May 27 an additional 19 shares for each share they already own. Trading under the split-adjusted share price is expected to begin June 6.
Amazon's stock closed Wednesday at $2,785.58, up 2.4%. Following news of the stock split, shares rose 6.5% in after-hours trading.
Amazon is the latest high-value tech company to announce a stock split. Google parent Alphabet announced a 20-for-1 split in February, and Apple announced a 4-for-1 stock split in 2020.
The stock split is subject to shareholder approval at Amazon's annual shareholder meeting on May 25.