Amazon is trading at $965 per share. It is approaching $1,000/share.
Will Amazon split its stock? Wall Street analysts and shareholders have been speculating.
My guess is that Amazon will NOT split stock.
As I wrote in How to Get a Job at Amazon, Jeff Bezos had quoted Ben Graham (father of value investing and teacher of Warren Buffet) at Amazon all-hand meeting.
“Stock market market is like a voting machine in the short-term and it is like a weighing machine in the long term.” Jeff Bezos and Amazon has been relentlessly focused on the long term and ignored the Wall Street.
It is ironic that Amazon has insane price-to-earning ratio and it is not a typical value stock.
At the recent Berkshire Hathaway annual shareholder meeting, chairman and CEO Warren Buffet said that Amazon CEO Jeff Bezos is “the most remarkable business person of our age.”
At Amazon’s shareholders meeting a couple weeks ago, an investor reminded Bezos of that comment and asked how he comes up with new ideas.
“Warren’s remarks are very meaningful to me because he’s a hero to me,” Bezos said at the Seattle event. “I read all his books.
I do not think Jeff Bezos will change his strategy, giving in to the speculation from the Wall Street. He will operate just like what Berkshire Hathaway has been doing, continue to grow the business and ignore the Wall Street.