On March 9, Amazon (AMZN -2.56%) 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.
