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
The Warren Buffett Scandal That Nearly Destroyed Wall Street
In 1991, Warren Buffett, the world’s best investor and most humble billionaire, got caught up in the middle of a scandal that rocked Wall Street and nearly destroyed his personal reputation forever. U.S. Investment Bank Solomon Brothers, of which Buffett …
Why I'm Selling My Stocks
What’s up? Grandma’s guys here. So yes, to Tony, you saw is true, and I want to be completely transparent because it’s that time of the year to start cashing out of the stock market again. Now I know what you’re thinking, but Grant, you said that you woul…
Why I'm going back to real estate
What’s up, Graham? It’s guys here. So here’s the deal: it’s no surprise that right now the real estate market is absolutely ridiculous. We’re seeing some of the highest prices on record, inventory is non-existent, and from the outside looking in, it appea…
Elon Musk: The recession is here, you just don't know it yet
But I think we probably are that are in a recession and that that recession will get worse. So there’s a lot of concern about the health of the U.S. economy right now. Many economists are predicting the country will soon slip into a recession. No disrespe…
The Soul of Music: Meklit Hadero Tells Stories of Migration | Overheard at National Geographic
[Music] Hey there, I’m Kyrie Douglas. I’m a producer here at Overheard, and this is the final episode of our four-part series focusing on music exploration and Black history. It’s called “The Soul of Music,” and National Geographic explorers will be sitti…
How do you build a budget? | Budgeting | Financial Literacy | Khan Academy
In this video, I’m going to show an example of what a budget could look like and how you might want to modify that budget depending on your goals, your wants, your needs, and what you want to save for. So, I’m going to do it on a spreadsheet, but you cou…