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
From the Frontlines to the Shorelines | Podcast | Overheard at National Geographic
[Music] Now for the marine forecast for Waters within five nautical miles from shore on Western Lake Superior, from Fort Wayne to Bayfield to Saxon Harbor, Wisconsin, and the outer Apostle Islands. It’s summer 2021, time of this radio broadcast. National…
The 5 MOST PROFITABLE Savings Accounts of 2019
What’s the guys, it’s Graham here. So I made this video about six months ago where I went over the most profitable savings accounts that you can get. Since then, in the last few months, I’ve received non-stop messages that the information is now outdated.…
Tornadoes 101 | National Geographic
Tornadoes are big funnel-shaped clouds that can rip through a community and leave a wake of destruction. They can form in seconds, change direction in a heartbeat, and their devastation can last a lifetime. Exactly how and why tornadoes occur is still a b…
Why your $1 is REALLY worth $5 (Real Estate Investing Mind Trick)
This is also why when you’re investing in real estate, how you should look at every one dollar is actually being worth five dollars. Because this is how much it’s actually truly worth. So this is something I catch myself doing all the time and I thought I…
How Animals and Humans Clash and Coexist in Yellowstone | Nat Geo Live
For 20 years, my camera’s led me to some pretty extraordinary places. I could have never imagined that I would be standing on the streets of a place like Pyongyang, North Korea, and 20 years later, I came back to the United States with my cameras, and it’…
Geometric series introduction | Algebra 2 | Khan Academy
In this video, we’re going to study geometric series. To understand that, I’m going to construct a little bit of a table to understand how our money could grow if we keep depositing, let’s say, a thousand dollars a year in a bank account. So, let’s say t…