Amazon's stock split and buybacks are called a positive signal on Wall Street
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Amazon (NASDAQ:AMZN) traded higher on Thursday after the announcement by the company of a 20-for-1 stock split and a $10 billion buyback authorization. 
Morgan Stanley is positive on the impact for Amazon (AMZN) shareholders as it notes that AMZN's stock split and repurchase authorization increase are now one part in a series of increasingly shareholder friendly actions that includes better color on capex, buybacks and now the increasing repurchase authorization and stock split. Those measures are seen catalyzing potential multiple expansion
Analyst Brian Nowak: "Historically AMZN's repurchases have been positive signals about the equity value, as they would have earned an average return of 42% over a 6 month return period (see Exhibit 1). Similarly, the average 12- and 24- month returns on Amazon's share repurchases (assuming they bought and held the stock) would have been 100% and 135%, respectively."
Cowen analyst John Blackledge said the Amazon (AMZN) split could signal that the e-commerce giant is moving past the peak of its capex cycle.
There is also some discussion that the Amazon (AMZN) split could set it up for inclusion in the Dow Jones Industrial Average. At the split-adjusted price, Amazon (AMZN) would rank as the 12th-smallest weighing of the Dow 30 stocks if it got the call-up to the historic index.
Shares of Amazon rose 5.33% in premarket action to $2,934.16. AMZN trades below its 50-day, 100-day and 200-day moving averages.