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
How to Manage with Ben Horowitz (How to Start a Startup 2014: Lecture 15)
So in Sam’s originally sent me an email to do this course he said, “Ben, can you teach a 50-minute course on management?” I immediately thought to myself, “Wow, I just wrote a 300-page book on management.” So that book was entirely too long, and I didn’t …
TIL: You Might Be Related to Genghis Khan | Today I Learned
[Music] [Applause] [Music] So you probably heard of the name Genghis Khan or Jengus Khan, but you might not realize that something like one in 200 men in the world were genetically related to Genghis Khan. So he was obviously very, um, prolific. Yeah, bu…
Partial derivative of a parametric surface, part 2
Hello, hello again! So in the last video, I started talking about how you interpret the partial derivative of a parametric surface function, right? Of a function that has a two-variable input and a three-variable vector-valued output. We typically visual…
Models of citizenship | Citizenship | High school civics | Khan Academy
What do you think it means to be a good citizen? What does a good citizen do? Take a minute to imagine your idea of a good citizen. What characteristics does that person have? What actions does that person take that contribute to their status as an active…
Climbing Islands in the Sky in Search of New Species | Nat Geo Live
Mark: My years in Yosemite were the best years of my life. That was where I was training and I was learning the skills of big wall climbing. And I wanted to find walls that people hadn’t done before and I wanted to pioneer my own routes. But, you know wha…
Musings from Gary | Port Protection
We in Port Protection are very lucky for the abundance of seafood. Wildlife, most everything we get comes from nature. The waters of Port Protection present a feast to those who know how to catch it. But few take better advantage of her bounty than 36-yea…