Amazon.com Inc (NASDAQ:AMZN) shares are beaten down and out of favor as the e-commerce giant prepares to report earnings after the bell.
Market Rebellion co-founder Jon Najarian isn't seeing any large options volumes ahead of the company's results, but he suggested Thursday on CNBC's "Fast Money Halftime Report" that a stock split could help.
"We haven't had significant speculation on either side," Najarian said, adding that such isn't uncommon for Amazon because of its lofty stock price.
A split could be one solution for improving the liquidity of the stock, he suggested, noting that Alphabet Inc (NASDAQ:GOOG) (NASDAQ:GOOGL) announced a 20-for-1 split earlier this week.
Related Link: If You Invested $1,000 In Google Stock After Last Stock Split, Here's How Much You'd Have Now
"It doesn't change a thing when you split the stock except that you create better liquidity," Najarian said. "Instead of dealing with a $2,800, $2,900 stock, you could be dealing with something a little more manageable."
He noted that a stock split could be "attractive" for both management and potential investors who have avoided the stock because it's too expensive on a per-share basis.
Najarian told CNBC that he plans to hold his Amazon shares through earnings and sell calls against his position as he "waits for a signal" to make additional moves.
See Also: Why This Investor Thinks Amazon's Stock Is Well Positioned Ahead Of Earnings
AMZN Price Action: Amazon has traded as low as $2,707 and as high as $3,773 over a 52-week period.
The stock was down 6.5% at $2,816 ahead of earnings Thursday afternoon.
Photo: courtesy of Amazon.
