Most Internet stocks fell on Thursday, but Amazon.com recorded a modest gain of nearly one percent in its first day of trading after splitting its stock 2-for-1. Shares of Amazon.com climbed 9/16 to 60-1/16. Even with Thursday’s gain, Amazon.com is well off its split-adjusted high of 110-5/8.
It’s becoming increasingly common to see a stock rise right after it splits. This, of course, makes hardly any logical sense. Part of the thinking is that a lower stock price means more people will be able to buy shares, but it’s hard to understand why those potential buyers couldn’t simply have bought half as many shares at the pre-split price.