Amazon Stock Split: Why It Wants a Lower Share Price – Barrons shares are moving sharply higher in after-hours trading after the e-commerce and cloud-computing giant declared a 20-for-1 stock split and announced an expanded stock-repurchase program.

While stock splits don’t mathematically create any value for holders—they’re the financial equivalent of cutting a pie into smaller pieces—retail investors tend to like them, and split announcements often trigger short-term rallies. And, in fact, Amazon shares (ticker: AMZN) were up 6.3% to $2,962 in premarket trading Thursday.

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