Before the 20-for-1 split announcement, Amazon's stock surges, with the opening costing nearly $125 per item

Before the 20-for-1 split announcement, Amazon's stock surges, with the opening costing nearly $125  ...

Get Amazon.com, Inc. Reportshares boosted Monday ahead of the first day of trading following a 20-for-1 split of the online retailing giant''s stock that will tie its nominal price closer to the big-name brands such as Apple (AAPL) - Get Apple Inc. Reportand Meta (FB) - Get Meta Platforms Inc. Class A Report.

After the split, shareholders of Amazon received 19 additional shares of the group, which was then announced on May 24, 2010. The split, which was the first for the company in three decades, was formalized after the closing of the trading Friday and will begin changing hands later today.

Get Alphabet Inc. Class A Reportis is also preparing to cut its nominal share price into the mid-$100 range from a Friday close of $2,327.50 each, when its own 20-for-1 split is concluded on July 15.Tesla (TSLA) - Get Tesla Inc Report, which split its stock in August of 2020, will put its 7-for-1 modification to a shareholder vote on August 4.

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Amazon''s stock was marked 2.04% higher in pre-market trading to indicate an opening bell price of $124.83 each. On a split-adjusted basis, the stock''s new all-time high is $188.65 each, while its March 2020 low is $81.30 each.

The stock is down 8.5 percent since the split was announced on March 9, compared to a 6.7 percent decline for Nasdaq, a tech benchmark.

As part of the reason behind the split, Amazon - as well as its peers - has targeted greater investor access, despite the fact that retail investors are beginning to pull away from stock markets.

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According to Goldman Sachs analyst Dan Kostin, around $26 billion has flooded US equity mutual funds and exchange traded funds in the last seven weeks, and that retail investors had, in effect, sold all of their equities over the past two years.

That being said, Amazon''s split leaves it open to inclusion in the Dow Jones Industrial Average, aprice-weighted index that is designed tosmooth-out the vagaries of splits and dividends in its 30 stock collection. It does this through the Dow divisor, a number that represents the effect of a stock price decrease on the overall average.

Both would argue for Dow inclusion because of their industry dominance and planet-like influence on broader financial markets.

What might be the alternative to Amazon?

Get International Business Machines Corporation Reportseems the most likely target, with a market cap of $127 billion, and stock that''s dropped nearly 5% over the last five years. Intel Corp. (INTC) - Get Intel Corporation Report, at $177 billion, might also be a swap, according to the CSCO report, which has a market value of $187 billion.

Apple denied the acquisition of AT&T Inc. report from its Dow perch in March of 2015, less than a year after the iPhone maker (now the world) unveiled a 7-for-1 stock split in June of 2014.

Pfizer (PFE) - Get Exxon Mobil Corporation Reportand Raytheon (RTX) - Get Salesforce, Inc. Reportand Honeywell (HON) - Get Honeywell International Inc. Report.

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