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 Timbuktu Job | Explorer
When Al-Qaeda invaded Northern Mali, it was only a matter of time before they started burning books. But in Timbuktu, one librarian decided he couldn’t let thousands of years’ worth of history and literature be destroyed without a fight. There was nothing…
3d vector field example | Multivariable calculus | Khan Academy
So in the last video, I talked about three-dimensional vector fields, and I finished things off with this sort of identity function example where at an input point (X, Y, Z), the output vector is also (X, Y, Z). Here, I want to go through a slightly more …
Elephant Cleverly Steals Sugar Cane off a Truck in Thailand | Secrets of the Elephants
Thailand Highway 3259 is a sugarcane transport road. Thousands of farmers use it to get their crops to the refinery. But this highway has a toll collector. Locals call him the Don. And this is his territory. He’s a master dealmaker, calculating risk vers…
Avoid THESE Poor Habits Before You Burn Out | Rachel Hollis Interview
Think it really is a way to set your, you know, the last quarter of your life in a way that you really enjoy it. I drove myself into the ground with bad diet, bad sleep, bad habits of every kind. What the [ __ ] was I thinking? So, I guess let’s start wi…
Buoyancy Quiz
We are doing a buoyancy experiment today. If you drop a golf ball into some dishwashing liquid, it sinks very slowly. So why does it sink in the detergent? Because the golf ball is more heavy than the liquid that’s in the container— then the detergent. W…
Should you buy your private jet in cash?
Steve, I’m about to buy my first jet. Should I pay cash or should I finance it? I really think it depends. If you can make more money than they’re going to charge with the bank, obviously then borrow the money. But I’d say about 80% of the people finance…