This article was originally published on Fool.com. All figures quoted in US dollars unless otherwise stated.
On March 9, Amazon (NASDAQ: AMZN) announced a 20-for-1 stock split, the company's first split since 1999 and its fourth since the IPO in 1997. Additionally, Amazon announced a $10 billion share buyback plan. The company's shares have rocketed 4,300% since its last stock split announcement. Amazon's stock price soared to all-time highs after the pandemic, but it's been trading sideways to lower since. Do the shares have more pain ahead, or is Amazon stock a buy now?
Of course, you do not own more of Amazon because of the stock split. If you cut a pizza into 20 slices, you still have one pizza. With that said, lower share prices can equate to more pin action because of options contracts, and I think the company looks attractive here as a long-term investment.
In the video below, I break down the key fundamental highlights that will power Amazon over the next decade. I'll also chart out Amazon's price-to-sales ratio and provide an opinion on where I think the stock price is headed from here.
*Stock prices used in the below video were during the trading day of March 11, 2022. The video was published on March 11, 2022.
This article was originally published on Fool.com. All figures quoted in US dollars unless otherwise stated.
