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
Astronauts Training for Moon Missions | National Geographic
(Uplifting music) I’m astronaut Nicole Mann. I am astronaut Frank Rubio. I am NASA astronaut Jessica Meir. So there’s about a million things going through my mind as I think about going to the moon. You know that the little kid inside of me just get…
"America's Best Idea" - President Obama on National Parks | National Geographic
Two of your predecessors felt very much the same thing, didn’t they? Teddy Roosevelt walked these very trails through these redwood trees along with John Muir, the father of the American conservation movement, and these granite mountains. They lit a fire …
Gen X Reacts to AIDS | Generation X
In 1985, Rock Hudson, Hollywood heartthrob, becomes the face of AIDS, and overnight the epidemic is no longer anonymous. I was on the set of The Breakfast Club when I heard about Rock Hudson, and to me, that sort of changed everything. It kind of finally …
Conservation of energy | Physics | Khan Academy
We place a ball on this ramp, and we want to now figure out what happens to the speed of the ball as it goes forward. If you try to do this using forces and accelerations, it’s going to be really tough. But instead, we’re going to use energy conservation …
Harj Taggar - How Startups can Compete with FAANG Companies when Hiring Employees
[Music] Hey everyone, I’m Harj. I’m a partner at Y Combinator and I’m gonna answer the question of how do I hire someone who has competing offers from the big tech companies. There’s two ways I think you can compete with someone who has an offer from a …
2014 Berkshire Hathaway Annual Meeting (Full Version)
Thank you. Good morning. Uh, before we start, there are two very special guests that I’d like to introduce. Have stand up. Uh, the first, uh, even though he was on tour, he, uh, took a quick, uh, detour to Omaha to be here today, and will my friend Paul A…