Amazon stock split

Shares have tumbled since company announced 20-for-1 split

Amazon (AMZN 3.20%) announced that it would conduct a 20-for-1 stock split, and in May, shareholders voted to approve it.

For every Amazon share that previously existed, 20 have taken its place.

One share of Amazon traded at $2,447 last Friday prior to the split, so dividing that number by 20 means the new share price is $122.35.

Shares of the e-commerce giant rose 2% in New York after the split, but shares are still down about 10% since reporting the plan in March.

stocks will be trading at a discount to the sticker price originally envisioned by executives.

“Stock splits are usually a sign of optimism,” said Mark Lehmann, chief executive officer of JMP Group.