Amazon’s stock is up about 5% on Monday (June 6), the first day of the 20-for-1 split announced by the retail behemoth in March, but shares are still trading at about 25% less than they were at the start of the year.
Alphabet, which announced its own secondary shares sales plan in February that had shares trading at a discount to the price executives had envisioned to allow consumers more access, is down 17% since then, according to a Bloomberg report Monday.
“Stock splits are usually a sign of optimism,” said Mark Lehmann, chief executive officer of JMP Group, in the Bloomberg report. “Very few companies split their stock in anticipation of things going poorly. It’s an example of what’s reflected in the entire market.”
In reality, stock splits have no effect on the share’s value, but traders were excited to see them become a bit of a regular occurrence among some of the business world’s biggest names, the report said.
Related: Amazon Leans on Alexa and Football to Reverse 6-Month Slump
Amazon continues to be a company in some transition, even as it retains its place atop the eCommerce mountain. Last month, the company said it is not only looking to grow its Alexa ecosystem but is counting on strong growth in the defensive healthcare sector as well as the macro tailwinds of an aging population to help turn things around at the mothership.
Branded as Circle of Support, the first Alexa upgrade will allow up to 10 remote caregivers to assist and partake in the daily monitoring and communication with an aging or homebound family member or friend via text and other mobile updates and alerts.
A second service tweak is being added under the Alexa Routines umbrella, a programmable feature that automates several daily tasks, such as turning on lights at a certain time or delivering the news and weather, that are now being targeted at the unique needs of the elderly, offering services like medication reminders.
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