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No you wouldn't. You'd have one share of AWS and one share of Amazon, that the market previously priced the sum of them as $1T. On market open, the market will
by reducesuffering 4y ago
No you wouldn't. You'd have one share of AWS and one share of Amazon, that the market previously priced the sum of them as $1T. On market open, the market will have some volatility finding the estimated price difference between them, but I wouldn't expect any actual sales of Amazon retail at around $500b.
- slt2021 4y agoIt depends on how would you split the corporate debt between the two entities. If you load up enough debt on AWS, and have Retail debt free and with cash - it is possible to have both shares valued at the same price Remember that Market cap = Enterprise value - Net debt. We can argue that enterprise value of business is different, but by changing net debt figure of each company we can make market cap of both firms equal