The opinions expressed in this article are those of the writer, subject to the Publishing Guidelines. On the date of publication, Samuel O’Brient did not hold (either directly or indirectly) any positions in the securities mentioned in this article. For now, though, shares are at a great price for small-scale investors looking to buy into the tech behemoth. That type of success has compelled Amazon and other high-growth tech companies to split shares as well.ĪMZN stock may indeed reach $150 down the line. However, they can certainly prove beneficial to investors.īack in 2020, Tesla (NASDAQ: TSLA) announced a stock split, sending shares up 80% between the announcement and actual split date. Stock splits don’t instantly create value for a company. However, he says that “splits lately have been a source of relative alpha.” The analyst and his firm continue to regard AMZN stock with favor, although Aptus would be willing to “pare back” if the share price grew to exceed $150. Wagner does note that stock splits aren’t a guaranteed magic pill to maximize returns for investors. The split does not change the value of the company, but did act as a short-term bullish catalyst. “And right now, it’s finally harvesting.” Amazon split its stock earlier this month, performing a 20-for-1 split. “his stock tends to outperform well when its harvesting instead of investing,” the analyst adds. That isn’t the only positive mark Wagner sees for AMZN stock, either. An uncertain consumer outlook adds risk, but with at 15-20% penetration of Retail, y/y growth trends likely bottoming, and the company seemingly cost focused from here, we see Amazon as well positioned for resumption of penetration growth.” “For arguably the first time in 20 years, Amazon has significant excess capacity, and we expect Retail margins to improve from recent lows as utilization scales. Following the split, Wagner shared his insights in an email to InvestorPlace: Wagner is also an AMZN shareholder in Aptus exchange-traded funds (ETFs). David Wagner is a portfolio manager at investment advisor firm Aptus Capital Advisors.
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