Amazon's stock trades in 3-digit territory as first stock split in 23 years takes effect

For the first time in about five years, Inc.'s stock AMZN, -2.52% is trading in three-digit territory, because the ecommerce and cloud giant's 20-for-1 stock split has taken effect.

The stock closed Friday at a pre-split adjusted $2,447, and was trading up 0.7% in premarket trading Monday, to put it on track to open just above $123.

The last time the stock traded below the four-digit level pre-split was October 2017. The stock split is Amazon's first in 23 years, takes effect after the stock fell 2.5% to a split-adjusted $122.35 on Friday to snap a six-day win streak in which the stock had run up 20.6%.

The stock has dropped 26.6% year to date through Friday, while the S&P 500 SPX, -1.63% has lost 13.8%

Amazon, whose 20-for-1 split takes effect Monday, is among companies whose stocks have tumbled since the moves were announced amid a broad market selloff that’s been especially painful for the technology sector.

Shares of the e-commerce giant have fallen 12% since reporting the plan in March. Alphabet, which announced a similar proposal in February, is down 17% since then.

The selloff means the stocks will be trading at a discount to the sticker price originally envisioned by executives.

“Stock splits are usually a sign of optimism,” said Mark Lehmann, chief executive officer of JMP Group.