yego.me
💡 Stop wasting time. Read Youtube instead of watch. Download Chrome Extension

Amazon Stock Split?


2m read
·Nov 3, 2024

Today I'm gonna do something different and talk about when Amazon might split their stock with respect to what happened at Google. Now let me first mention that I called the Tesla split last year, and I will reveal my positions for Amazon later.

Now, some finance junkies are out there thinking stock splits don't affect the value, and once again, you have to be an idiot to believe the things you learned in finance. If we look back at what happened to Tesla, Apple, and Google, it's clear that splits do affect the value because it affects the Ponzi value—the only value that matters. Cheaper stocks are easier to shuffle and pump.

In the previous video, I showed how Amazon stayed flat over the past year while they made 30 billion dollars. That phenomenon is actually quite common; I call it the Google scenario in my research because Google stayed flat between 2007 and 2011 while the company made 29 billion dollars. Google basically had a ceiling at around 650 for four years, and it didn't break until they announced the stock split in 2012.

Back then, a 700 stock was uncommon and expensive, similar to what a 3,000 stock is today. Over the past year, Amazon had a similar Google-style ceiling at around 3,700. Now, that ceiling can break naturally over time with inflation, but I think Amazon's going to do it artificially with a stock split. Well, based on what happened at Google, I think we can all agree that Amazon will definitely split their stock within the next three years if they stay flat.

But I think it's going to happen within the next year if they stay flat because people are just less patient now. Furthermore, given what happened to Tesla and Apple, if they make that announcement, it will probably happen when they are releasing earnings.

As for me, I have a few bullish spreads that expire November 5th. The one highlighted is a call spread between 36 and 3,800 that closed around seven dollars today. So it's about a seven hundred dollar bet to win twenty thousand. I think it's a decent deal because thirty-six hundred dollars is familiar territory for that Ponzi asset, and these don't expire for a while; in fact, a week after earnings in early November.

However, I don't think it's going to hit that 3,800 max return mark unless Amazon makes a split announcement because, God knows, valuation is so.

There you have it. Now good luck and Ponzi up!

More Articles

View All
How to Cure Aging – During Your Lifetime?
Health is the most valuable thing we have in life, but we tend to forget that until we lose it. We’re living longer than ever before, which is great, but an unforeseen consequence of this is that we also spend a larger and larger portion of our lives bein…
Fireflies Put on a Spectacular Mating Dance | Short Film Showcase
[Music] It’s late summer in the highland forests of Mexico. Billions of fireflies are hiding in the underbrush, waiting for the perfect night to find a mate. But most nights, something is off, and so they keep waiting. The fireflies prefer a moonless nigh…
The kg is dead, long live the kg
On November 16th, representatives from nearly 60 nations will be meeting in Versailles, France, to vote to change the definition of a kilogram. Not only that, they will also be changing the fundamental unit of temperature, the kelvin, the unit for amount …
Place value tables
So I have this number here, and what I would like you to do is pause this video and tell me for this number how many hundreds do we have, how many tens, and how many ones? Pause this video and try to think about it. All right, well, we can just look at e…
Happy Halloween From Nat Geo | National Geographic
[Music] Animals contribute so much to the work that we do here at National Geographic. Sometimes we like to give back to the Animal Kingdom and invite them into our space. This year we planned a few Halloween activities to introduce them to our customs an…
Writing equations of perpendicular lines (example 2) | High School Math | Khan Academy
Find the equation of a line perpendicular to this line that passes through the point (2, 8). So this first piece of information, that it’s perpendicular to that line right over there, what does that tell us? Well, if it’s perpendicular to this line, its …