AmazonThe company’s stock is up about 5% on Monday (June 6), the first day of the 20-for-1 split that the retail giant announced in March, but shares are still trading about 25% lower than they were at the start of the year, so there’s plenty more. Work to be done to change the profitability of the e-commerce giant.
Alphabet, which announced its stock sale plan in February that includes trading shares at a discount to a price that executives envisioned to allow consumers greater access, has fallen 17% since then, according to a Bloomberg report on Monday.
The report said the sell-off makes it easier for Amazon and Alphabet to join the Dow Jones Industrial Average, whose weighting is based on the stock price, but it could make some investors wonder if their market values are slipping.
“A stock split is usually a sign of optimism,” he said. Mark LymanJMP Group CEO, Bloomberg. “Very few companies have split their stock in anticipation of things going wrong. It is an example of what is being reflected in the entire market.”
Indeed, the stock split has no effect on the value of the stock, the report said, but traders were excited to see it turn up fairly regularly among some of the biggest names in the business world.
Amazon continues to be a company in transition, even as it maintains its position at the top of the e-commerce mountain. Last month, the company said it’s not just looking to grow its Alexa ecosystem, but is counting on strong growth in the defensive healthcare sector as well as the overall tailwind of its aging population to help turn things around on the mother ship.
Classified as the Support Circle, the first Alexa upgrade will allow up to 10 remote caregivers to help out, participate in daily monitoring, and connect with a family member, friend who is elderly or at home via text messages, updates and other mobile alerts.
A second service mod is being added under the umbrella of Alexa Routines, a programmable feature that automates many daily tasks, such as turning on lights at a certain time or delivering news and weather, which is now targeted to meet the unique needs of seniors, and offers services like medication reminders.
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