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
What’s in Air Freshener? | Ingredients With George Zaidan (Episode 6)
What’s in here? What does it do? And can I make it from scratch? Spoiler alert: I actually can’t, but the reason is fascinating. Ingredients. Now, there are a lot of different ways to get scents into the air. But if you’re actually interested in what tho…
LearnStorm Growth Mindset: Dr. Michael Merzenich on growing your brain
But we’ve actually trained athletes, you could say, on the sort of academic side of training you would not necessarily imagine. And guess what? It improves our performance on the field. What’s happening for a couple of reasons. One reason is that you’re …
Stonehenge Has a Traffic Problem | Podcast | Overheard at National Geographic
It’s June 2021 at Alice Zoo, this National Geographic photographer. She’s in a field in rural England. It’s this gray, overcast English morning. It was still totally dark when we arrived. There were kind of a few other figures quietly making their way in …
Khan Academy Ed Talks with Kristi Yamaguchi - Thursday, March 3
Hello! Welcome to Khan Academy Ed Talks. I am Caroline Hu Flexer, the CEO and co-founder of Khan Academy Kids, which is a mobile app for children ages two through eight that’s focused on literacy, math, and social-emotional learning. Today, we are celebr…
Peter Lynch: How to Invest Like a Pro (Most Recent Interview)
Now when somebody reports earnings, it’s telecast all over the world. They have an investor presentation; they show a balance sheet. So information is much better. So theoretically, the individual’s edge has improved in the last 23 years versus the profes…
How Elon Musk Spends His Time
How do you spend your days now? Like what do you? My time is mostly split between SpaceX and Tesla. And of course, I try to spend a part of every week at OpenAI. So I spend most—I spend basically half a day at OpenAI most weeks. And then I have some OpenA…