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Amazon launches share buyback and stock split option
U.S. giant Amazon plans to repurchase shares in the amount of 10 billion dollars. In addition, the corporation intends to split the securities in the proportion of 20:1.
It should be noted that the procedure for splitting shares is observed in Amazon for the first time since 1999. This decision will make the securities more accessible to investors. All owners of the company’s shares, which will be entered into the general register before the end of May this year, will receive 19 securities in addition to each available. They will be available after the close of trading in June. After that, the share price will change.
According to an Amazon spokesperson, the split of securities will allow employees to use more tools to manage their equity stakes in the company. In addition, more investors will now be able to own shares of the giant.
As for the buyback program, it was carried out in 2016, then the amount was $5 billion. The corporation bought back $2.12 billion worth of stock.
The news about the buyback increased the value of the shares by 6.23% to $2,959. At its highest point in the period, the stock rose nearly 11% to $3,089.8 per unit.
Amazon continues to increase the turnover of its business. Earlier this year, the corporation launched Amazon Style, an offline store in Los Angeles that offers customers clothing, shoes, and accessories. The 2,800-square-foot facility operates through innovative technological solutions aimed at simplifying the product search and fitting system. Customers are presented with an assortment of hundreds of brands and names of goods.
To pay for purchases a biometric system Amazon One is used, which allows to carry out a transaction with the movement of the palm. Shoppers in the store can get smart recommendations in the company’s mobile app for trying on and purchasing items. People enter certain characteristics and their wishes, on the basis of which the system builds recommendations.
In addition, when you scan the code of the desired item, the digital assistant gives information about the availability of a particular size and color options. You can also queue in the app to try things on and continue choosing items until the fitting room is free. The fitting rooms are equipped with touch screens where you can ask to bring a thing of a different product or color, and the store staff will bring the right option.
In addition, algorithms generate personal recommendations for each shopper in terms of style and personal preferences, which speeds up the shopping experience. Amazon Style is a success, with a huge number of people visiting it every year. The company is not going to stop at just one smart store, in the future they will appear in other American cities.