Is Amazon stock a buy now before the 20-for-1 stock split?

Amazon has been stuck in the mud since its pandemic highs, but is the stock a buy now?

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This article was originally published on Fool.com. All figures quoted in US dollars unless otherwise stated.

On March 9, Amazon (NASDAQ: AMZN) announced a 20-for-1 stock split, the company's first split since 1999 and its fourth since the IPO in 1997. Additionally, Amazon announced a $10 billion share buyback plan. The company's shares have rocketed 4,300% since its last stock split announcement. Amazon's stock price soared to all-time highs after the pandemic, but it's been trading sideways to lower since. Do the shares have more pain ahead, or is Amazon stock a buy now?

Of course, you do not own more of Amazon because of the stock split. If you cut a pizza into 20 slices, you still have one pizza. With that said, lower share prices can equate to more pin action because of options contracts, and I think the company looks attractive here as a long-term investment.

In the video below, I break down the key fundamental highlights that will power Amazon over the next decade. I'll also chart out Amazon's price-to-sales ratio and provide an opinion on where I think the stock price is headed from here.

*Stock prices used in the below video were during the trading day of March 11, 2022. The video was published on March 11, 2022.

 

This article was originally published on Fool.com. All figures quoted in US dollars unless otherwise stated.

Eric Cuka owns Alphabet (A shares), Amazon, Apple, and Nvidia. Eric is an affiliate of The Motley Fool and may be compensated for promoting its services. If you choose to subscribe through his link, he will earn some extra money that supports his channel. His opinions remain his own and are unaffected by The Motley Fool. The Motley Fool owns and recommends Alphabet (A shares), Amazon, Apple, Cisco Systems, and Nvidia. John Mackey, CEO of Whole Foods Market, an Amazon subsidiary, is a member of The Motley Fool’s board of directors. The Motley Fool Australia's parent company Motley Fool Holdings Inc. owns and recommends Alphabet (A shares), Amazon, Apple, Cisco Systems, and Nvidia. The Motley Fool Australia's parent company Motley Fool Holdings Inc. recommends Alphabet (C shares) and recommends the following options: long March 2023 $120 calls on Apple and short March 2023 $130 calls on Apple. The Motley Fool Australia has recommended Amazon. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

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