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
Cellular respiration | Energy and matter in biological systems | High school biology | Khan Academy
In this video, we’re going to talk about cellular respiration, which sounds like a very fancy thing, but it’s really just about the biochemical processes that can take things that we find in food and convert it into forms of energy that we can use to do t…
My thoughts on Robert Kiyosaki
What’s up you guys, it’s Graham here. So if you’re anything like me, you’ve noticed an unusually high amount of Robert Kiyosaki videos being recommended right now on YouTube. Like, it seems as though every single time I open up the homepage, there’s a fre…
Great White Sharks of Guadalupe Island | Most Wanted Sharks
NARRATOR: But everyone loves Lucy. The story of this great white is the classic “Finding Nemo” tale, but about 2,000 pounds heavier. When divers spotted Lucy back in 2008, her distinctive tail wound looked fresh. And she seemed in desperate need of a good…
Keith Schacht and Doug Peltz on What Traction Feels Like - at YC Edtech Night
This is the last fireside chat tonight, and I am very happy to introduce Quiche Act and Doug Pelts from Mystery Science. Thank you! Whoo! Thanks! Could you guys just start us off by introducing yourselves, please? I’ll let you go first. Okay! I’m Doug f…
WHICH PLAYER SHOULD I CHANGE? | Maresca hits back at calls for more Chelsea substitutes
Must proved a very frustrating end to the afternoon for you, and what does it tell you about your Chelsea team? No, yeah, as I said, I just said that probably we did enough to win the game today. Between the first half and second half, I think we created…
Dangling modifiers | Syntax | Khan Academy
Hello Garans, hello Rosie, hi Paige. So in this video, we’re going to talk about something called a dangling modifier. So before we get into what a dangling modifier is, we can sort of talk about just what a modifier is. Rosie, do you want to tell us wha…