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
You Think You’re Free? Jean Rousseau Knew You Were Enslaved!
Narrator: There’s a question we’ve stopped asking, not because we found the answer, but because we’ve been too distracted to remember it exists. Am I actually living or just existing in a loop someone else designed for me? From the moment you wake up, you…
Another average velocity and speed example
We are told a seal and a penguin are playing a fun game of catch. The penguin swims leftward nine meters, then dodges rightwards another 12 meters. The penguin swims a total time of eight seconds, so goes to the left for 9 meters and then it goes to the r…
Gee Pole | Yukon River Run
Mus: “Hy mush, mus! Oh, good job, hus! Job break! Break! This a nice trail right here. Hopefully it’ll stay this way, but I think we’re going to get into some rust country and a portage up there. We want to get up to our cabin. Laur and I want to get up t…
BlackRock: the Company That Controls* the World's Governments
You wake up to the sound of the alarm on your iPhone, and annoyed that you couldn’t get more sleep, you grudgingly unlock your phone to see what’s going on in the world. There’s an email from Amazon telling you that your package has been delivered, so you…
Hindu gods overview | World History | Khan Academy
Hinduism is often known for its large and complex pantheon of gods. The goal of this video is to give an overview of them and to think about how they are connected and how they are perceived. So, the Hindu Trinity, as it is often called, is made up of Sh…
Powers of zero | Exponents, radicals, and scientific notation | Pre-algebra | Khan Academy
In this video, we’re going to talk about powers of zero. Just as a little bit of a reminder, let’s start with a non-zero number just to remind ourselves what exponentiation is all about. So, if I were to take 2 to the first power, one way to think about …