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
SOAP FOR ADULTS ... LÜT #16
Go to sleep in a chocolate bar or a can of sardines and an infectious disease stress ball that you can squish. It’s episode 16 of LÜT. Are you tired of wimpy straws that make you look like a loser? Well, grab ThinkGeek’s food grade Titanium straw. It tea…
It's Surprising How Much Small Teams Can Get Done - Sam Chaudhary of ClassDojo
Well, I don’t want to miss this story. Uh-huh. Oh, sly grin. Yeah, so little known fact: one of your first investors was Paul Graham of Y Combinator. Yeah, can you tell us about that meeting? What convinced PG to write you a check? Yeah, it was hilarious…
Charlie Munger: We're Playing With Fire (Interview)
[Music] Hey guys, welcome back to the channel. We got something really cool to talk about today: Charlie Munger. As you guys know, one of my favorite investors, he recently did a 45-50 minute interview with the California Institute of Technology, which i…
The Pioneer of Ecstasy in the US | Narco Wars: The Mob
The first time I took ecstasy was in Manchester. Thinking, “What is this? This is pretty boring.” And all of a sudden, my knees just completely buckled, and time just started to stand still. The whole room is just throbbing, and everybody’s dancing, and t…
Pre Columbian Americas | World History | Khan Academy
It is believed that the first humans settled North and South America, or began to settle it, about 15 to 16,000 years ago. The mainstream theory is that they came across from northeast Asia, across the Bering Strait, during the last glaciation period, whe…
10 QUICK Life Hacks To Save Money ASAP
What’s up, you guys? It’s Graham here! So, as some of you might already know, I am slightly obsessed with saving money. Okay, fine, that was a lie. I’m very much infatuated with saving money and trying to find the most creative ways to cut back without ev…