Amazon may perform a stock split, shares soar on rumor

On Monday April 26, Fox Business's Charles Gasparino tweeted that an Amazon stock split is likely in 2021 and could happen as early as Thursday when the company reports earnings.

BREAKING: Traders says an @amazon stock split is likely in 2021 possibly as early as Thursday when co reports earnings catapulting @JeffBezos significantly ahead of @elonmusk as the world's richest person as move would allow $AMZN to join the Dow more now @FoxBusiness

— Charles Gasparino (@CGasparino) April 26, 2021

Real quick, this is what a stock split means:

• A stock split is a corporate action in which a company increases the number of its outstanding shares by issuing more shares to current shareholders.
• The primary motive of a stock split is to make shares seem more affordable to small investors.
• Although the number of outstanding shares increases and the price per share decreases, the market capitalization (and the value of the company) does not change.

So us bottom feeders can cop AMZN without having to take out a second mortgage. The current share price is over $3,000, so if this goes through you'll be able to buy it for a lot cheaper.

Amazon is an e-commerce giant and practically dominates the world. It's like a steroid for your portfolio and a forever hold, with this potential split making it way more affordable. No brainer add in my opinion. Apple's stock price went lower once their reverse split actually happened, and for some reason that scares people. We WANT discounts on great companies.

This move would push Jeff Bezos ahead of Elon Musk as the world richest person and allow Amazon to join the Dow.

*Not financial advice.