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
Help Jason Give Back to Khan Academy
My name is Jason Spiers, and at the age of 19, I made a stupid decision to sell cannabis and ended up in prison. Fortunately, my mother sent me Khan Academy transcripts to start improving my education, and while I was doing that, other inmates noticed and…
There Are Better Ways to Save Sharks—Here's How | National Geographic
My name is Jess Graham, and I am a shark researcher and responsible marine conservationist. Lots of hammerhead sharks, frisky seals, huge yellowfin tuna, massive snapper—I’ve never seen anything like it! I’m studying the effectiveness of marine reserves o…
Where No Grid Has Gone Before | Breakthrough
We don’t go to them and say, hey, we’ve got electricity. We’re going to bring it to you. We’re going to bring you modern entertainment that electricity provides, no. They’re coming to us and saying, we’re so far off the grid, we don’t have any electricity…
Indigenous Art in Canada | National Geographic
If you want to travel through indigenous country, experience the art. Whether it’s a painting, whether it’s a sculpture, whether it’s a song, every piece is the embodiment of a story. The art is the land, and the land is the art. This is how we share our …
2004 Berkshire Hathaway Annual Meeting (Full Version)
Thank you. Good morning. Some of you may have noticed a stuntman was used in that. Arnold just couldn’t handle some of those scenes. Before we get started, I’d especially like to thank Andy Hayward, who’s here today, and if we can, no way we can find him …
A school of hippos gives an aggressive warning sign | Primal Survivor: Extreme African Safari
(Exhales forcefully) But it’s not crocodiles I should have been watching out for. Instead, it’s one of the most temperamental animals out here. (Hippo snorting) Wow, there are a lot of eyes looking in my direction, a lot of ears pointed in my direction. T…