(Reuters) – Shares in Amazon.com Inc (NASDAQ) jumped 5% following the massive split and buyback by Amazon.com Inc., a company that attracts more investors to a stock whose price has soared since it was first listed 25 years ago.

The 20-for-1 stock dividend split of the company marks its first since 1999. This is on top of a $10 Billion share buyback. The announcement comes just weeks after Alphabet Inc (NASDAQ:) Inc announced a similar split.

Russ Mould from AJ Bell Investment stated, “Amazon’s Management is looking for fresh confidence.” He added that the buyback marked the company’s first cash return to shareholders since it was listed on the stock exchange.

On Wednesday, the stock of the company closed at $2,785.58 – close to a 2-year low. This was after it experienced a rally in tech shares that helped bring it within touching distance of reaching a $2 Trillion valuation.

Amazon’s stock symbol was trending on the investor-focused social media site Stocktwits.com. According to Swaggystocks’ sentiment aggregator Swaggystocks.com, it was one of Reddit’s most popular wallstreetbets.

After the stock splits in 2020 by Apple Inc and Tesla Inc, shares of Apple Inc (NASDAQ) and Tesla Inc (NASDAQ) Inc rose sharply. Tesla joined the company at the end of 2018.

Perri Dong of Redwood (NYSE) Winslow LLC said Amazon’s stock division “just makes novice investors and traders feel more comfortable”. He also stated that he holds Amazon shares.

It’s psychological. It’s possible that the shares might have greater liquidity, but it does not matter to me.

In 1997, the company was listed at $18 (or $1.50 if adjusted for stock splits in 1999 and 1998).

On June 6, the latest stock split will be in effect

Amazon Inc. shares surged on Thursday, which was a positive sign in an otherwise grim market. Microsoft Corp (NASDAQ:) were trading lower.

Graphic: Amazon versus mega tech stocks: https://graphics.reuters.com/AMAZON.COM-STOCKS/zjpqkoggopx/Amazon%20versus%20mega%20tech%20stocks.jpeg